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The 5 Main Stages of Home Buying

Posted by Ron Neal on Wednesday, August 1st, 2018 at 9:19am.

A Short Guide to Home BuyingHome buying may be specific to the type of home a buyer chooses and the neighborhood they hope to live in, but there are several stages that are common to all home buyers. Before delving into the details of each stage, learn more about how the process works as a whole to get a better sense of where to start.

Find a Price Range

Before a homeowner asks themselves if they want an adjustable or fixed-rate mortgage, they need to know more about the kinds of homes they can afford. Many buyers are surprised at just how much they're able to afford, regardless of their credit or financial standing. While the general rule is to keep a mortgage at about a third of the homeowner's monthly income, this is not always possible with the rising rates of home inflation in many places in Canada.

Select a Neighborhood

While a pre-approval can always fall through (either due to the lender or the buyer), pre-approval parameters make it easier to focus on neighborhoods that fall within a certain price range. Buyers should research not just the current state of the neighborhood, but also any changes that may occur. Many sellers fail to mention the industrial complex set to be built in the next three years, but this information will give buyers a forewarning about how demographics and property values may shift in the future.

Hire Help

A real estate agent can be the key to showing a home buyer the properties that will fit their needs, but they can do so much more than this. The right agent will counsel a buyer on everything from the best lenders to the right mortgage to how to structure their offer. They take the time to understand zoning regulations, fill out endless paperwork, and recommend trustworthy title companies, lawyers, and home inspectors. It's this kind of due diligence that ensures the sale goes through without any sort of legal hiccups or hassles.

Bid on the Home

Once a buyer has found a home for them, it's time to make an offer. Offers can be made with no strings attached but most buyers will include at least a few contingencies before they finalize the sale. For example, they may request a home inspection to ensure the safety of the home. This is also a good time to choose a mortgage based on the price of the home, necessary repairs, and closing costs. (Closing costs can add up to 4% of the home's purchase price onto the total.)

Settle the Details

Once the bid of the home has been accepted and the seller has met their obligations, it's time to organize the transfer of funds. Most real estate transactions are completed with the help of a lawyer who can review the documents and ensure the sale agreements and status certificates are all up to par. The lawyer is the entity who typically receives the funds from the lender. Once the buyer puts down their deposit, the lawyer will pay the seller and the buyer will take control of the property.

From the idle wish to buy a home to the moment the Saanich Peninsula home buyer receives the keys, there are plenty of things a buyer needs to do between the two events. Understanding the basics of home buying is a good jumping off point to learn more about the specifics of each sale.


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The Neal Estate Group is your #1 source for all of your Victoria BC real estate needs. Get in touch with us online or by phone at (250) 386-8181 to speak with a Victoria real estate buying or selling expert today. With decades of experience as a top selling Victoria REALTOR® and ranked in top 1% globally with over 5,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Group have the industry experience and market knowledge to help you make smart and informed buying or selling decisions. 

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