Hey there! Welcome to LGA Realty Group’s Home-Buyer Guide. Whether you’re a first-time buyer or looking to make a move, this guide is designed to help you navigate the exciting journey of purchasing a home. Here at LGA Realty Group, we believe in making the home-buying process as smooth and enjoyable as possible. Let’s dive in!
Before you start scrolling through listings, it’s essential to understand your financial standing. Take a look at your savings, monthly income, and expenses. Calculate how much you can afford for a down payment and your monthly mortgage payments. Don’t forget to account for additional costs like property taxes, insurance, utilities, and maintenance.
Pro Tip: If you can, aim to save at least 20% of the home’s price for your down payment to avoid mortgage insurance.
In a slow market, a pre-approval letter from a lender shows sellers that you’re a serious buyer and can expedite the buying process. In a competitive market like the one we’re in now, it is an absolute necessity if you want to get an offer accepted.
You can use a licensed Mortgage Broker to shop around for the best mortgage rates and terms available from different lenders and find the best deal for you, or you can use the mortgage specialist at your bank to find out how much you qualify for with them.
Most lenders will reserve your rate for 120 days when you get a pre-approval, so if rates go up, you keep the lower rate, but if rates go down you still get the new lower rate.
Pro Tip: Keep an eye on your credit score. A higher score can get you a better interest rate.
What’s your dream home? List your must-haves and nice-to-haves. Consider factors like location, size, number of bedrooms and bathrooms, yard space, and proximity to work, schools, and amenities. Knowing what you want will help narrow down your search.
Think about your future needs. Are you planning to start a family? Need a home office? Factor these into your decision.
Pro Tip: Playing “Would You Rather” with yourself or your partner can help make tough decisions on prioritizing what’s most important to you. Take your list of must-haves and nice-to-haves and put each individual item against each other in every combination possible. Count the score for each item to determine what matters most to you.
Now comes the fun part – house hunting! Use our online platform, visit open houses, and schedule showings with your Realtor. Don’t rush; take your time to find the right home.
Pro Tip: Your Realtor can show you any home on the market, no matter which company or real estate agent it is listed with. You do not need to sign up on dozens of real estate websites and speak to dozens of Realtors to have access to all the listings available.
Found the perfect home? Great! Your Realtor will help you make a competitive offer. They’ll guide you through the process, including negotiating the price, terms, and conditions with the seller.
Terms are contract items that the buyer and seller agree to. For example, “Buyer and Seller agree that the pool table in the basement will be included in the sale and forms part of the purchase price.”
Conditions are contract items that need to be satisfied before the contract is firm. They can be for the benefit of the Buyer or the Seller, and give one party the opportunity to back-out of the deal if they are not satisfied.
The most common conditions you may want to include are financing, if you will be obtaining a mortgage, an inspection (if possible), and a condo doc review if you are purchasing an apartment or townhouse.
However, these are just a few examples and common conditions. There are several terms or conditions that could be required to protect your interests in the deal. This is one of the ways that having a professional Realtor will immensely benefit you.
Pro Tip: Be prepared to act fast in a hot market. A strong offer with a personal touch can make a difference.
In very competitive markets where properties are getting multiple bidders, it can be extremely difficult to get an offer accepted with a home inspection condition included. Oftentimes, the purchase price will have to be so much higher to beat the next best offer, that the extra amount you had to pay would’ve more than covered any repairs.
In slower markets, home inspections become much more common. If you have the opportunity to get one, you should. They help identify issues with the property, and start you off with a list of items to keep an eye on. If the inspection reveals significant problems, you can negotiate repairs or adjust your offer.
Pro Tip: Attend the inspection to learn more about your future home and ask questions.
With the inspection complete and negotiations settled, it’s time to finalize your mortgage. Your Realtor will help you provide your lender with the necessary documents. Your lender will typically then arrange for an appraisal of the property.
Pro Tip: Stay in close contact with your lender to ensure a smooth closing process.
As mentioned in Step 5, there are many different terms and conditions that can apply to real estate transactions. Some are based on the property type, age, or location, and some are based on the situation or the parties involved.
All conditions agreed upon by the Buyer and Seller need to be satisfied before the “Condition Date”, (the deadline to complete conditions), or the deal no longer moves forward.
Pro Tip: Often your conditions depend on third parties like lenders, inspectors, and other professionals. Your Realtor will help you stay organized and on top of everyone to avoid delays and missing crucial deadlines.
Once all conditions are removed, the deal is firm. Sometime between removing conditions and Closing Day is when you’ll sign all the legal paperwork. Among other things, your lawyer will transfer the purchase money, and register yourself and your lender on title. Review all documents carefully, ask questions if needed, and make sure you understand everything being presented to you.
Now that your deal is firm, you can begin to plan moving day, notify your utility providers, and prepare for your move!
On Closing Day, or Possession Day as some call it, your lawyer and the Seller’s lawyer will confirm with each other when the money has been sent/received, and when keys can be released. They will notify your Realtor, and your Realtor will meet you at your new home!
Pro Tip: Celebrate this milestone! It’s a big achievement and deserves recognition.
Congratulations! You’re now a homeowner. It’s time to start making your new house a home. Take your time to settle in and enjoy your new space.
Pro Tip: Meet your neighbors and explore your new community. Building connections can make your new place feel like home.
Buying a home is a significant step, and we’re here to help you every step of the way. At LGA Realty Group, we’re committed to providing you with the best service and support. If you have any questions or need assistance, don’t hesitate to reach out. Here’s to finding your dream home!
Welcome to the LGA Realty Group family!
