Key Takeaways
Purchasing a home in 2024, especially in the vibrant city of Calgary, requires careful planning and guidance. This comprehensive home buying checklist will help you navigate the process smoothly, ensuring you’re well-prepared every step of the way. Whether you’re a first-time buyer or looking to upgrade, this guide covers everything you need to know.
Step 1: Determine Your Budget and Get Prequalified
The first step in your home buying journey is establishing a realistic budget. Consider your income, expenses, and savings. Use online mortgage calculators to get a sense of how much home you can afford.
- Prequalification vs. Preapproval: Understand the difference. Prequalification gives you an estimate of what you can borrow, while preapproval is a more rigorous process that involves a credit check and verifies your financial information.
- Credit Score Improvement: If needed, take steps to improve your credit score. Pay down debts, avoid new credit inquiries, and correct any errors on your credit report.
- Save for a Down Payment: Aim for a substantial down payment to reduce your monthly mortgage payments and avoid private mortgage insurance (PMI).
Step 2: Find a Skilled and Professional Real Estate Agent
Having an experienced real estate agent by your side can make a significant difference.
- Agent’s Role: They guide you through the process, help you find the right home, and negotiate on your behalf.
- Communication and References: Discuss your agent’s communication style and ask for references to ensure they are a good fit for you.
- Buyer’s Agent Commission: Understand your responsibilities regarding buyer’s agent commissions and the benefits of having a dedicated agent.
Step 3: Start Your Home Search
Identify what you need in a home versus what you want.
- Must-Haves, Nice-to-Haves, Deal-Breakers: List your essential features, desired extras, and non-negotiables.
- Custom Search Alerts: Work with your agent to set up alerts for new listings that meet your criteria.
- Neighborhood Insights: Evaluate properties and learn about neighborhoods, schools, and local amenities.
Step 4: Make an Offer and Negotiate
Once you find the perfect home, it’s time to make an offer.
- Fair Offer Price: Determine a fair offer price based on market conditions and comparable home sales.
- Strong Offer Components: Understand what makes a strong offer, including contingencies like home inspections and appraisals.
- Negotiation: Your agent will help you negotiate terms and conditions to secure the best possible deal.
Step 5: Get a Home Inspection
A thorough inspection is crucial to avoid surprises down the road.
- Hire a Reputable Inspector: Choose an experienced inspector to examine the property.
- Attend the Inspection: If possible, attend the inspection with your agent to review the findings firsthand.
- Additional Assessments: Depending on the property, consider tests for radon, septic systems, pools, etc.
Step 6: Finalize Your Mortgage
Ensure all your financial ducks are in a row.
- Lender Requests: Respond quickly to your lender’s requests for additional documentation.
- Closing Disclosure: Review and understand the Closing Disclosure or ALTA statement with your agent.
- Closing Funds: Know the exact amount needed for closing and ensure funds are ready.
Step 7: Close on Your New Home and Celebrate Your Success
You’re almost there!
- Final Walkthrough: Schedule a final walkthrough to ensure all agreed-upon repairs are completed and the home is in the expected condition.
- Closing Meeting: Attend the closing meeting, sign the necessary documents, and receive the keys to your new home.
- Celebrate: Congratulate yourself on becoming a homeowner! Stay in touch with your agent for ongoing support.
Dos and Don’ts While Under Contract
Dos:
- Save for Closing Costs: Save enough money for closing costs in addition to your down payment.
- Cautious Debt Consolidation: Consult your lender before consolidating debt to avoid negatively impacting your credit score.
- Wait for Big Financial Changes: Delay any significant financial changes until your home purchase is fully funded.
Don’ts:
- Big Purchases: Avoid buying a car or new furniture until after closing.
- Cash Deposits: Don’t make large cash deposits or move money around during the underwriting process.
- Applying for Credit: Refrain from applying for new credit or increasing credit limits.
- Co-signing: Avoid co-signing for others, as it can affect your loan qualification.
- Late Payments: Keep all existing payments on time to maintain your credit score.
- Job Changes: Avoid changing jobs or careers unless absolutely necessary.
- Changing Banks: Don’t change banks in the middle of qualifying for your loan.
- Credit Cards: Avoid closing credit cards or maxing them out.
Your Take
As a real estate agent, your goal is to help clients achieve their homeownership dreams while ensuring a smooth transaction. Use this checklist to guide them confidently through the home buying process. Offer your expertise, answer their questions, and celebrate their success.
For more personalized advice and support, download our comprehensive home buying checklist PDF and take the first step towards your new home in Calgary today!