New Home Purchase in Red Deer
Get the Best Mortgage Broker on your Team!
When you come to the decision to purchase a new home, you will want to have the right team on your side! From pre-approval to move in day, there are mortgage specialists you need to get you through the door with a little stress as possible.
We would love to be one of the professionals on your team! Reach out to us today if you have any questions! Or simply apply online for mortgage pre-approval! We look forward to working with you in the future!
New Home Purchase Red Deer Alberta
Purchasing a home is a major investment. One could consider it your largest investment. This is the place you will call home. And, as anyone will tell you, there are certain steps to making that dream a reality. While we can provide you guidance throughout the mortgage process, we do have some tips to share with you, if you are thinking about purchasing a home.
The Planning Stage
Before you jump straight into viewing homes, there are a couple of points that you need to be honest with yourself about. Owning a home is great, but it comes with responsibilities. If you have been renting for a period of time, you will find that all of the maintenance requirements of a home will fall to you, as the homeowner. This comes with financial commitment. Not only to paying for the mortgage, but to paying for upkeep, property taxes, all utilities, etc. If you are ready to commit to this, then you will want to determine the area in which you would like to live. You will need to work through your budget to determine what you can afford. Once you are clear on those details, finding the right professionals to assist you with the next stages is key to a stress free experience. We have recommendations if you are looking for lawyers, inspectors, and realtors to work with. And we would be happy to give you a few referrals to consider.
Before you actually start shopping for homes, it is important to go through the pre-approval process. With our assistance, we can help you determine the amount of mortgage financing that you could qualify for. We will do a preliminary calculation based on information you provide us. This will include income, current debts, and how much down payment you will be able to provide. All of this allows us to calculate how much funding you could be approved for. Then, we will have a discussion about your personal wants and needs in regards to this home investment. We will make some product recommendations based off of your information provided. And we can discuss rates and rate options. This conversation, which will take about 1 hour, will leave you with a clear picture of where you are and the path to obtaining that dream of owning a home. If you want to proceed with the pre-authorization, then we will collect the necessary information from you and start the pre-approval process with potential lenders. If you want to think about it a bit longer, that is fine as well! However, pre-approval is important if you are serious about purchasing a home and need to finance it. It indicates to realtors that you are actually in the market to purchase a home in the near future. And they will work hard for you because of that. And a pre-approval will keep you within your price range so that you are not looking at homes beyond your budget. Which can be disappointing!
Shopping for your Home
This is where things really get exciting! Once you are aware of your budget and you know the price range you need to keep to, your realtor will work hard at presenting all properties that meet your requirements. Be open and honest about what you are looking for with your realtor. Do you want a garage or will you be satisfied without one? Giving your realtor a list of what you want will help them search for properties that will click off as many of them as possible. Once you have decided on which property you would like to purchase, your realtor will assist with preparing a written offer to the seller. The offer will include conditions (such as financing approval, inspection, condo minutes and documents, etc), a date for conditions to be removed, and a date for new possession. You will then need to make a deposit with the offer. Your realtor will contact the realtor for the seller and, between the two of them, they will present the offer and any counter offers to their respective clients. Once all parties have come to agree on the offer, the purchase is deemed as being pending. No further offers will be presented to the seller.
Finalizing your Mortgage Funding
Most home buyers will have already been pre-approved for a mortgage. This is an initial approval and will now need to be updated with all of the property details of the home you are wanting to purchase. This is sometimes called a “live application”. Approval at this stage is really quite quick. Usually within 24 hours. We will then have all of the financing details (rate, terms, and conditions) and we will work with you to obtain all the document requirements (such as income verification, down payment confirmation, etc). Then the lender will review and confirm that any financing conditions can be removed. Final documents are forward to your lawyer. Once your funding is approved, you will then have an inspection completed on the property. Your realtor will walk you through that stage. And once all of the conditions have been met or completed, the offer moves from pending to binding.
Signing with the Lawyer
In Canada, mortgages are funded through lawyers. So, this means that you will be making a trip to his office to sign off on your mortgage documents. The lawyers also will protect the Buyers interest against title issues or other issues that they are specialized in identifying. This is a legal, binding financial transaction so it necessary to have the lawyer review it in detail. They also disperse the funds from buyer to seller, with detailed statements provided.
All that is left to do at this point is move in! In most cases, the keys to your new home are given to you between 11 and 2pm but you can make arrangements for a later time if you need to. Afternoon is when you will have the moving company arrive with your items and friends and family on hand to help you unload and unpack! Remember to have refreshments ready for them and maybe a couple of slices of pizza as they work!