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The Home Buying Process

Step 1:

Check Your Credit Report & Score

Step 2:

Find How Much You Can Afford

Step 3:

Find the Right Lender and Real Estate Agent

Step 4:

Look for the Right Home

Step 5:

Make an Offer on the Home

Step 6:

Get the Right Mortgage for Your Situation

Step 7:

Close on Your Home

Step 8:

Move In!

Step 1: Check Your Credit Report & Score

It is always important to check your credit report and score before looking to purchase a home. If your score is higher, you will be able to qualify for a higher mortgage. Be sure to check the report for any possible errors and dispute them as soon as possible. This is an important step as you do not want a faulty report to affect your ability to qualify for a higher mortgage. Once this is complete and error free, you can then move forward to the next step of finding how much you can afford.

Step 2: Find How Much You Can Afford

There are plenty of resources online to help you find how much you can afford for a new home. Use an online mortgage calculator to help you estimate. During this step, you also need to take into account other factors such as how much you will be putting as a down payment, closing costs, any additional fees (legal, appraisal, inspection etc.). If there are any design or structural changes you are looking to make, it is important to take this into account as well. You can also reach out to local experts to understand how much of a down payment you will need and any helpful credits that may be available to you.

Step 3: Find the Right Lender and Real Estate Agent

When looking for the right mortgage lender, you need to shop around. Make sure to get recommendations from family and friends and online reviews. We recommend talking to a few different mortgage lenders so you can find the best fit for you and your needs. During this time, be sure to ask plenty of questions.

Next is securing pre-approval. Pre-approval will give you a more concrete idea of how much of a loan you qualify for. If you obtain approval before you start looking for homes, this will make the sale process go much quicker. Furthermore, your offer could look more appealing to the sellers as you have already secured financing.

Step 4: Look for the Right Home

Make a list of your must-have’s that everyone has agreed upon. For example, how many bedrooms and bathrooms do you need? Do you need to be within a certain distance from a school or from work? Having these discussions upfront help everyone be on the same page and ensure you are finding the right home for you. After this, you can find extra qualities that make the home the perfect fit. Would you like a home with a pool or an existing office space? Make sure to take into account the rate of home appreciation in the area as well.

Step 5: Make an Offer on the Home

Now it’s time to make an offer! Many sellers price their homes higher as a tactic to open negotiations. We recommend starting five percent below the asking price and continue negotiations from there. With the help of your real estate agent, you can see how much comparable homes have sold for and make a sound offer. After rounds of negotiations and a price is agreed upon, you will make an earnest, which is money that goes in escrow to give the seller a sign of good faith.

Step 6: Get the Right Mortgage for Your Situation

With many different mortgage programs to choose from, it’s important to find the one that best suits you. You should be aware of the three basics: adjustable rate, fixed rate and interest-only.

Adjustable rate mortgages (ARMs) are short-term mortgages that offer an interest rate that is fixed for a short period of time. After that, the interest rate can adjust every year up or down, depending on the market. These are good for people who don’t plan on living in their home very long and/or are looking for a lower interest rate and payment.

Fixed-rate mortgages offer a fixed interest rate for a longer period of time, usually 15 or 30 years, though they’re available in 20 or 25 year terms. These are good for people who like a predictable payment and plan on living in their home for a long time.

Both fixed and adjustable rate mortgages can have an interest-only payment. What this means is that for a certain amount of time during the loan term, you’re allowed to pay only enough to cover the interest portion of your payment. You can still pay principal when you wish, but don’t have to if your budget is tight. There is a myth that with interest-only mortgages, you don’t build equity. This is not necessarily true, since you can build equity through home appreciation. The benefit to interest-only mortgages is that you increase your cash flow by not paying principal.

Step 7: Close on Your Home

Before closing on your home, be sure to get a home inspection. It is important to bring in a professional that may see things in the home a buyer normally would not. They will look to ensure the property is in good condition and let you know of any concerns.

Next you need to set a closing date. When choosing a date to fit both the seller and the buyer, be sure to take into account anything that will affect your timing to move in, such as a rental agreement.

Your closing costs will be the next step here. This includes your down payment, title fees, appraisal fees, legal fees and inspection fees. Your mortgage banker will be able to help you understand the closing costs upfront in the initial budgeting stage so there are no surprises.

Step 8: Move In!

Now that you have completed the entire home buying process, it’s time for you to move in! Finding the right realtor, mortgage and home all lead to this final step of you enjoying your new home. With the right realtor to guide you along the way, the home buying process doesn’t need to be so daunting. Your realtor is there to help answer any questions you may have and guide you along the process so you can even enjoy looking for a new home. Now it’s time to unpack and make lasting memories in your new home!

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What Our Clients Are Saying

DiatoDiato
15:18 07 Sep 22
Our agent Jett was very knowledgeable from preparing for a sale all the way through closing. We are very happy and satisfied with how this experience went for us.
Zoey IslaZoey Isla
19:54 25 Aug 22
I had a fantastic experience using Mitch to buy my dream home. The market was still competitive when we first made the offer. Everyone was so friendly and accommodating, and the process was very smooth and easy to navigate. I recommend Calgary Home Sales Group to anyone looking to buy a home who wants a competitive edge.
sebastian Ethansebastian Ethan
17:50 25 Aug 22
I enjoyed the process. I was looking for a solution to downsize my house but I did not want to sell my house before finding a new home. I was exploring several solutions to get that done without so much success until I heard about the service that Mitch Siemens was offering. It was just perfect for what I needed. The whole process went smoothly. The people with whom I interacted were all very professional, knowledgeable, and helpful. Overall I had a good experience.
Cassandra KeoughCassandra Keough
21:57 04 Jun 22
Mitch is absolutely fantastic to deal with. He answered all of our questions in a timely and professional manner. He also gave us excellent vendor recommendations. You will be 100% be satisfied having him represent you as your realtor. Thanks for everything Mitch!!
Sunny SharmaSunny Sharma
19:23 04 Jun 22
MR AL TRENHOLM! Is the man!!! ( yes this is a real review)I have quite honestly in all the properties I have bought never found a realtor who is an amazing as him. My wife found him online and we decided to give it a shot and book some showings with him. He was very patient and most importantly not pushy. He gave us his honest opinions on everything we looked at.We found a place we loved In Chestermere and turned out to be the one. One condition we had was we needed to sell one our places. Al had it listed online and offers flying within a week.Here is the crazy part there was a few things like back door needed to be fixed, garage remote, dirt along the house. He came on his day off and made sure everything was fixed and did all by himself and passed the charges and repairs bill onto me nothing extra! I have never seen someone go above and beyond the regular duties of a realtor.I will never use anyone else as long he’s around. Give him a chance you won’t be disappointed.Thank you Al! More business coming your way.
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