We want to learn what your hopes, dreams and expectations are. We want to help you achieve them Let us walk you through this exciting journey and tell you what you can expect when purchasing a new property.
There are many ways that you can get together the funds for your downpayment and secure a mortgage. We recommend you do that at the start of the property search process, so you know what your budget is.
Being pre-approved for a mortgage helps sellers feel secure when you make an offer. It also gives you peace of mind knowing the financing has been taken care of. This way, you can focus on finding the right place with your realtor.
Your Agent will discuss everything with you, such as downpayment, deposit, due diligence costs and closing fees.
SPARK is here to make the process as informative, seamless and as easy as possible.
A good starting place is often the lending institution you have your bank accounts with. They have most of your information on file already and access to your savings records, debts and investments. They can often give you a good idea of what a bank would be willing to lend you based on your particular financial situation.
Before you decide on going through the entire process, you should shop around other financial institutions as well. Having multiple places run a credit report will actually hurt your score, so you want to make sure you only do this when you are ready.
The other option to look for financing is by using a mortgage broker. A mortgage broker does not work directly for banks, they are completely independent and work for you.
The job of a mortgage broker is to shop around on your behalf to find the best rates and terms that meet your needs. They can often be particularly helpful for those who are self-employed or paid on commission.
Mortgage brokers have many connections to smaller lenders as well as large banks. They are often paid by the bank that they secure your mortgage with so you don’t have to worry about any extra fees.
Your Spark agent will have mortgage brokers in their arsenal that they can connect you with.
Here comes the exciting part! Finding the perfect property with your realtor. Once we go over what you are looking for in the perfect place, we can start sending you lists tailored to your preferences and visiting them if you are interested.
After your SPARK agent send you homes based on your wants and needs, you can set a time with your agent to go and view them. When buying a home, it is important to look at all your options so you are happy with the choice you have made for you and your family. Our agents will do everything they can to help you find the new home that suits you.
Once you have found the right place and discussed it with your realtor, it is time to make an offer to the seller. This can be a very exciting yet nervous time but we will guide you every step of the way.
Our job is to conduct research on the property and comparable ones to make sure we know what it is worth so we can get you the best deal possible. It is also to negotiate the best terms with the seller, like closing date, deposit and conditions you may want, such as getting a property inspection.
There may be some back and forth during this time as we negotiate with the seller’s agent. There may even be competing offers on the same property. Don’t worry, you will be kept informed every step of the way and no decisions will be made until you have all the information you need.
You want to hire a real estate lawyer as soon as possible so they can start work on your purchase. They will do things like make sure that property doesn’t have any debts registered against it, check for any right-of-ways or easements and finalize the exchange of money and keys on the day of closing.
Your realtor will send the contract to the lawyer when the deal is finalized and you will need to attend their office before the closing date to sign some documents and give them your downpayment.
If you are pre-approved for a mortgage, you just need to give them the lender the property information and lawyer’s contact details. They may need to do an appraisal, so this is important to know before finalizing an offer. Your realtor can then add it as a condition to the contract.
Your bank will send instructions to your lawyer and you will likely sign everything at their office. They will give the money you need to your lawyer on the day of closing.
Most of the time the bank will not be giving you all the money to buy the property. You will have already paid a deposit to the seller when you made the offer but there are still some costs that you will need to cover.
For example, let’s say the property you bought was $400,000 and you gave the seller a $20,000 deposit. The bank is going to give you a mortgage of $300,000. That means before closing, you will need to give your lawyer the balance of the purchase price, which in this case, is $80,000. In this scenario, if you were putting a downpayment of $40,000.00 on the mortgage, you would need to have $20,000.00 at closing as the deposit makes up your down payment, it is not extra.
Deposit: The monies you give the seller at the time of an accepted offer. This is a show of good faith and that you are serious about purchasing the home. The deposit is protected in that should you not be able to remove any of your due diligence conditions, the deposit is returned to you.
Your lawyer will also likely require payment of their fees and any costs at the time of closing. They will tell you how much to give them in advance of the closing date and you will need to arrange with them how to get them the money.
Typically, on the day of closing, you will do one last walkthrough of the property with your realtor. This is just to make sure it has been cleaned out nicely and there are no issues or damage visible. If there is a problem, it can be quickly relayed to your lawyer to sort out with the other side.
Sometimes things come up that can delay the closing, like waiting on your bank to fund your mortgage or maybe an issue you discover on your walkthrough. This is we recommended that you do not schedule a move on the closing date, just in case you don’t get the keys until the end of the day or the next morning. Don’t worry, we will be with you to help you through any challenges.
Congratulations on your new property! Whether this is your first home or a rental property, you have taken a big step forward in your financial future.
With Spark Real Estate, you can always contact us even after the closing date with any problems. We are here for you and we look forward to working with you.
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