Buying a house is a personal decision, but you may be surprised at the number of people who end up being involved in the process. Here are the professionals you may meet as you shop for a new home, qualify for a mortgage and close on your loan.
When you first start looking for a home, contact a real estate company in the area where you want to buy. (The classified section of the local newspaper will list real estate companies in the housing section.) A real estate professional can show you available houses in your price range that meet your personal needs. Find out whether the broker is representing you or the seller, or both. This is important to know when you're negotiating a purchase price. If you decide to make an offer on a home, the broker will present your offer to the seller.
Some home buyers hire a mortgage broker to help them arrange mortgage financing. The mortgage broker should recommend the best type of financing for your personal financial situation. You may want to check that your broker is a member of the Canadian Association of Accredited Mortgage Professionals(CAAMP), and has obtained their Accredited Mortgage Professional (AMP) designation.
Banks, credit unions and mortgage companies lend money to home buyers. This loan is called a mortgage. Your lender will ask you to fill out a loan application form that includes information about your income, employment and debts. The lender will check this information to make sure the facts are correct.
Mortgage default insurance makes it possible for lenders to offer mortgage loan options with only a small down payment. If for some reason you can no longer make your payments, mortgage default insurance helps cover the lender's losses.
For a fee, a qualified inspector will examine the home you've chosen, from basement to attic. The inspection includes an evaluation of the home's plumbing, electrical work, appliances, the furnace, air conditioners, roof and structural stability. Some lenders require a home inspection, and it's a good idea to get one, because it could save you thousands of dollars in future expenses. Knowing the house's flaws may also help you negotiate a better price on the house.
The appraiser determines the market value of the house you've chosen, based on its condition and the selling price of similar homes recently sold in the area. This estimate helps the lender decide a reasonable loan amount for the mortgage. You shouldn't expect an appraiser to find out things that are wrong with a home; that's the inspector's job.
Your Lawyer is responsible for helping you with the Agreement of Purchase and Sale. If possible you should get your lawyer to review this agreement before you sign it. Your lawyer is also responsible for ensuring that all closing documents have been completed properly, including those related to the title search and title insurance. Your lawyer will explain what the closing documents are to you and the seller, obtain your signatures and record the documents with the appropriate local governments. He or she will also collect the transaction fees and give them to the appropriate parties.
You should contact your lawyer as soon as possible to make sure they have enough time to complete the necessary searches before your closing date.