Are you currently located in Canada or thinking of moving to Canada? Are you overwhelmed and don’t know where to begin buying a new home? Moving may seem scary sometimes, but with the right resources and tools, it can be a much easier process than expected.
Take the Process Seriously
Above everything else, you must remember to take the process seriously. Buying a house is a large investment and you want make sure that you get a good value for the price. You also want to be sure that you don’t overpay as well. That’s why it is best to get a professional involved. That is where a real estate agent comes in.
What is a Real Estate Agent?
Believe it or not, according to the Statistics Canada website, the Canadian real estate agents and brokers industry rose by 11.4% in 2020. This doesn’t come as a surprise since buying a home without one can be a complicated and daunting process. But, what exactly is a real estate agent?
A real estate agent acts as a point of liaison between the buyers and sellers in real estate transactions. They must be licensed to practice and they earn money through commissions. This means that their income depends solely on their ability to close the deals. This is good news for you since they will most likely do everything in their power to close the sales. It also means that your real estate agent will earn a percentage of the closing price
What Does a Real Estate Agent Do?
The role of a real estate agent is to serve as a representative of you during negotiations with the seller. However, they have many other responsibilities, such as:
- Planning and attending open houses
- Setting up appointments with potential buyers and sellers
- Finding homes for sale or listing homes to buy
- Researching sale prices of similar properties
- Scheduling home inspections and appraisals
- Completing paperwork for offers and purchasing agreements
- Sending information to the lender for the mortgage
Now, that you have a better idea of what a real estate is and what they do, let’s go over the process of buying a home with them.
The first thing to pin down when you are planning to buy a new home in Canada, or anywhere for that matter, is your budget. If not a complete budget, then try thinking of around what ballpark of offers you are willing to accept. This is important because it will more than likely be the first thing that your real estate agent asks. This question will determine the course of your buying journey and be the major impact that influences all of your options and choices.
Be Aware of Any Financial Issues
You must be prepared for it. Home loan lenders will look at your income, credit score, assets, and any debt you may have in order to determine whether or not to give you a loan for your new home. In order to make sure this process runs smoothly, get together with your real estate agent and prepare all of your financial documents and any other paperwork that may be needed.
These documents could include:
- Proof of income
- Bank Stubs
- Tax Returns
- Proof of Residency
- Credit Reports
- Social Insurance Card
If you owed a previous home before the new one, it would be a good idea to know how much equity you have built up. Equity is the amount you had paid off on your home, in this case, the previous one. If you have a good amount of equity, then you may be able to use it to put a down payment on your new home. This will also help with the pre-approval process as well.
Once all of these things are figured out, you and your real estate agent can start focusing on finding potential properties, scheduling viewings, and choosing a mortgage lender. A good real estate agent will do their best in order to make these processes as less complicated as possible. They do this by researching the neighborhoods and homes that will best match your budget and lifestyle.
Author bio- Joshua Shull is a builder and a broker in Arizona. He can help you build, remodel, buy, or sell any property.