Purchasing a home is an exciting and stressful time for many. I relate it much to an emotional rollercoaster ride. I’ve helped thousands of homeowners plan for this life-changing event! Equipped with the tools and resources, and a qualified Mortgage Broker by your side each step of the way will help ease your stress!
Here’s an idea of what you can expect throughout the steps of buying a home:
1- Let’s get you qualified. Knowing where your financial boundaries are in qualifying is the first step. How much do you qualify for? How much do you need as a down payment? What will your payments be? Can you afford them? Falling in love with a home is easy, falling in love with the payments isn’t always easy when you don’t know what they are and if you can afford them with your current income and expense. I like to sit down in person or virtually with my buyers. I want to learn about you, about what is important to you and customize a Carrie Cardinal Mortgage to your specific needs. A pre-approved mortgage will give you the confidence to shop for a home in your budget and empower you to make the best financial decisions as you know up front what it will cost.
A Down payment required is 5% on a home you will live in up to $500,000. For example: $500,000 home would require $25,000 down payment. This doesn’t have to be your first home, you can still purchase with 5% down on your 3rd or 4th home as long as you plan on living in the home.
2. Know your costs. Buying a home is expensive and it seems like everything adds up quickly! In addition to your down payment, you should have approximately 1.5% of the purchase price set aside for closing costs. These include inspections, legal fees, and closing costs.
If you are buying a home for $500,000 you should prepare for an additional $7500 on hand for these costs. Most of the time you won’t use all of these funds but you will have other costs like moving, hook-ups, property tax adjustments, rental adjustments on water heaters and softeners to name a few.
3. Paperwork! All banks and lenders require paperwork to confirm your income, employment, and down payment. If you would like to get a head start on the paperwork that will be required here is a list of the common paperwork Carrie will ask you to provide:
- A letter of employment from your employer, this will include your date of hire, position, and salary
- An up to date pay stub with your year to date income
- A void cheque or pre-authorized payment form. This will be the account you wish to make mortgage payments from
- Confirmation of your down payment. This can include 3 months bank statements, RSP statements or investment statements
Many times additional documents will also be required. Carrie will advise you on the required documents for your particular application which can include T4 slips, Notice of Assessments, T1 Generals, Separation Agreements, a completed gift letter, property tax statements, mortgage statements, rental or lease agreements for revenue property holders.
Each Carrie Cardinal Mortgage is tailored to your specific needs and requirements. When meeting with Carrie either virtually or in person, she will provide you with a detailed list of documents that will be required for your mortgage to ease your stress and allow you to be fully prepared!
4. Home Shopping! This is the fun part. With a pre-approval in place, you can now go shopping! Carrie also takes on select real estate clients and helps them find the perfect home in addition to her setting up mortgage financing. She also works with the finest real estate agents in Saskatchewan as well. If you already have an agent, she will work closely with them and if she has the capacity, she’d love to also find the perfect home and represent you as your REALTOR® as well as Mortgage Broker. Finding the perfect home is sometimes really easy, other times it takes a bit of time. Patience is key! A home is the largest investment most of us will make in a lifetime. Ensuring you have the professionals around to assist with all your questions, concerns that will come along the way. Carrie is a wealth of knowledge and resource. She also has worked with many other professionals to consult when we require help!
5. You find the perfect place to call a home, place and offer to purchase and it has been accepted! Congratulations! You will require a deposit to be applied in good faith until your conditions have been met. A deposit is part of your down payment. For example, the $500,000 home we spoke of with a $25,000 down payment, if you apply a deposit of $10,000 you will only be required to pay an additional $15,000 towards your down payment. If Carrie is representing you as your agent, she will take the ball and run with your mortgage financing and REALTOR®. If you are using another REALTOR® they will contact Carrie with your offer! In the case your offer doesn’t complete within the dates you have agreed upon, the deposit is returned to you.
6. Gather any remaining paperwork, complete any conditions placed in your offer including inspections and mortgage signing. Typically in Saskatchewan, we see between 7-10 days for conditions. This is a busy time! We then will meet and sign your paperwork either in person or virtually. In the meantime, you can set up home insurance, property tax payments if you are not paying them with your mortgage and utilities.
7. A few days to a week before possession you will meet with a lawyer, pay the remainder of your down payment and legal fees.
8. POSSESSION DAY! This is the day you receive keys to your new home!