Welcome to the Veteran Real Estate Group, Buyer's Guide.  This step by step information package walks you through what a typical home purchase looks like, the steps of the process, the costs that may be associated to the purchase of your home, and how you can get starting looking for your dream home.   Please feel free to reach out to us if you have any questions.

WHAT TO EXPECT WHEN BUYING A HOME  With the Veteran Real Estate Group

I'M READY TO BUY A HOME, WHERE DO I START?

MORTGAGE PRE APPROVAL

Start by having a conversation with your bank or other trusted mortgage broker (specialist) to get PRE APPROVED (if you don’t know one we can recommend some great mortgage specialists);

This is usually a quick and straightforward process that gives you a rough estimate of the amount you can qualify for when applying for your mortgage.

You may need to provide a Record of Employment, paystubs, investment information along with other requirements (T4’s etc.)

WHAT ABOUT A DOWN PAYMENT?

Your mortgage specialist will provide details on this but most likely they’ll advise you to:

Make sure you have access to a down payment, typically 5% of the sale value of the home, which can come from personal savings, RRSP/investments, home equity, etc.

In most cases, you may need Mortgage Default Insurance (CMHC) if you are putting down less than 20%. Your bank or mortgage broker can provide more information about this;

Depending on your lender, there may be options for 100% financing (no or minimal down payment)

NOW THAT YOU HAVE A BUDGET, IT’S TIME TO FIND A HOME THAT FITS YOU AND YOUR LIFESTYLE

This is generally the most exciting time for our clients. Its SHOPPING TIME!

To start, Contact the Veteran Real Estate Group (if you haven’t done so already) to work with a realtor who will help you find your ideal home, and take you to view homes currently listed for sale on the market.

WHAT ABOUT BRAND NEW HOMES?

I’m glad you asked, we have helped tonnes of clients buy brand new homes from many different builders.

Most builders have salespeople working in the show home and they work for the builder and do not have any fiduciary duties to you;

If you're interested in buying a new home, let us give you the representation you deserve. It could save you thousands in cash, and or could help negotiate upgrades/finishes.

Having worked in the industry for years, we’ve established many relationships with builders which help facilitate the transaction;

The best part is most builders love working with real estate agents, and it doesn’t cost you anything;

 YOU’VE FOUND A HOME NOW WHAT?

WRITING AN OFFER TO PURCHASE

We draft up the Purchase Contract and translate all the legal language so you can understand what’s required of you, and what’s included (and what you want included) in the purchase.

We will advise you of conditions to put into Purchase Contract. Common conditions include a property/home inspection, financing, and the sale of the buyer's home.

We will be in your corner to negotiate until you and the seller agree on a price/acceptable terms of the Purchase Contract.

***If the you and the seller don’t agree on terms, we go back a step and help you continue looking for another property (sometimes this process takes time, don’t get discouraged!)

***Once both parties agree and sign the Purchase Contract, the home is considered a PENDING DEAL.

THE HOME IS PENDING, NOW WHAT?

DEPOSIT

For a contract to be legally binding, a consideration (deposit) is required.  We will guide you through the process of providing your Initial Deposit (which is a Bank Draft/Certified Cheque, typically made out to the Seller's Brokerage).  This is held in the brokerage trust account and not by the seller.

Some brokerages now allow direct deposit or e-Transfer as well.  Either you, or your realtor can drop the Initial Deposit off at the Seller’s Realtor’s Brokerage.  

***Note, that this money is a portion of your down payment.  If the PENDING DEAL falls through, you will get the deposit back.

FINANCING APPROVAL

Meet with your bank/mortgage broker to inform them of your offer and facilitate your mortgage approval. You may need to provide a Record of Employment, paystubs, investment information, etc. (if you haven’t done so already). Your bank/mortgage broker may also require that you obtain Home Insurance at this stage.

Some banks/lenders may require a Property Appraisal as well, and it will be their responsibility to arrange this.

HOME INSPECTION

Select a home inspector of your choice (if you don’t know any we can make some recommendations) but we recommend you choose a certified inspector.

The average home inspection cost is between $400-$700, depending on the square footage of the home. While not mandatory in Alberta, home inspections are always recommended and again, we advise that you use a certified inspector.  

A certified home inspector will conduct an inspection of the home. We will be there to facilitate the inspection and typically you can be there too!

After the inspection you will receive a detailed report of the property and any deficiencies that were found.

If the home inspection goes well and your mortgage approval is successful, the next step is to remove the conditions from the Purchase Contract. We will provide you with a Notice (For Waiver/Satisfaction of Conditions) for your signature. Upon signing this document, the home is now sold!

Now its time to pick a lawyer and let them know you'll be utilizing their services (if you don’t know any we can make some recommendations). 

BEFORE CLOSING (POSSESSION) DAY

If you have not done so already, be sure to obtain home insurance, and set up utilities for your new address (natural gas, water, electricity, internet). Do this as soon as possible since utility providers may be booking in advance.

Ensure you have booked an appoint with your lawyer, who will have you sign all the required paperwork to transfer the home into your name, as well as inform you of all the applicable costs that will be associated.  The applicable costs that your lawyer will inform you of are commonly called, Closing Costs.  The average cost for a real estate lawyer will be approximately $1000 - $2000.  You will also be providing the remainder of your Down Payment for the purchase of your home to your lawyer at this time.     

CLOSING (POSSESSION) DAY

This whirlwind journey is finally coming to an end and your new home awaits!

On this day, your bank or the financial institution who approved your mortgage, will transfer mortgage amount (less your down payment) to your lawyer’s trust account. Your lawyer then transfers it to the sellers lawyer who verifies that funds have been transferred. Once this is verified, the sellers lawyer gives permission to the sellers realtor to release the keys (known as key release);

The intention is that you will get the keys from your realtor and have access to the home at approximately 12:00 pm.  

You will finally have possession of your new home!  

***Please note that this is a rough approximation of the time frame, as most lawyers do their best to achieve a 12:00 pm “key release”, it may take a few extra hours to get it all completed.  

POSSESSION WALKTROUGH

Now, as you finally get to go inside your new home for the first time as the owner, be sure to go room by room ensuring the items that that were listed on the Purchase Contract are still there (refrigerator, stove, garage door opener controls, central vacuum attachments, to name a few).  

***If the home is not in the condition that you had agreed upon or the items belonging to you are missing, let your realtor and lawyer know immediately.   Most of the time these issues can be easily rectified through your realtor.  

 CONCLUSION 

The Veteran Real Estate Group would like to thank you for taking the opportunity to read through our Home Buyer’s Guide.  Buying a home can be exciting, scary, overwhelming, and amazing all in one.   We would love to help you through this process.  Please, never hesitate to reach out to us at anytime, we’ll always be there.  

Sincerely,

Matt and Garett, Veteran Real Estate Group.