The Home Buying Process

Here are the steps to be followed for securing a mortgage to buy your dream home in Calgary, AB.

Step 1: Pre-Approval

When you first decide you want to purchase a home, it is wise to get a pre-approval. The pre-approval will tell you how much of a mortgage you qualify for, ensuring you are looking at homes in your price range. As well, speaking with a mortgage professional will help you find out where you stand and if for some reason there are any issues you can deal with them right away before you find your dream home.

Step 2: House Hunting

Find a good Realtor who has your best interest at heart, it's FREE to work with them when you are purchasing. Once you know your price range, your realtor will begin researching the available properties and will show you homes that fit your criteria. When you work with a Realtor you get listings a few days before they get listed on MLS.

Step 3: Offer In and Accepted

Once you've found your home, you will make an offer. The offer will be "subject to financing," meaning that the offer depends on whether or not you are able to obtain a mortgage. Your offer may also have other conditions, such as "subject to a satisfactory home inspection" or "subject to review of the condo documents." Once the offer is accepted, your realtor will provide a copy of the purchase agreement to your mortgage professional.

Step 4: Lender, Insurer, Appraisal

Your mortgage professional will work with the lender, insurer and appraiser to get you final approval on the financing. Your mortgage professional may ask you for further documentation at this time such as job letter, pay stub, bank statements, etc. You will need to collect the requested paperwork and submit it to your mortgage professional in a timely fashion.

Step 5: Firm Sale

Once you have met all of your financing conditions, your mortgage professional will instruct you to remove the "subject to financing" condition from your purchase contract. This is done with your realtor. You may remove other conditions at the same time (if they have been met). Once all of the conditions are satisfied, you have a "firm sale." Instructions from the lender will be sent to your lawyer's office at this time.

Step 6: Moving Details

Your lawyer is now receiving and preparing the mortgage documents. Your mortgage professional should follow up 2 weeks prior to your possession date to make sure your lawyer received instructions and then update you and your realtor. Use this time to start preparing for the move.

Step 7: Lawyers

Your lawyer will call you in to sign, usually about 3 to 4 days prior to your possession date. Your lawyer will advise you on what you will need to bring such as certified bank draft for the remaining down payment, photo ID and personalized void cheque. The possession date is the date the money is given to the sellers and the property is transferred to your name.

Step 8: Move In

You will do a walk through with your realtor usually before noon and then at noon they release the keys and you get to move in to your new home.

Step 9: First Mortgage Payment

Unlike with rent, which is paid at the beginning of the month, you make your mortgage payment at the end of the month. For example, if the purchase of your new home was completed on June 1, and you chose monthly payments, you will not have a mortgage payment until July 1.

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