Buying a home and beginning your work with a mortgage broker? Here are some questions you should ask your broker during the process.
Your buying offer has been accepted. Congratulations! Now that you are one step closer to owning your new property, what comes next? While you are approaching the finish line, there are still several important items to take care of before you can get the keys to your new home. Here are a few of the biggest tasks on the list!
Secure mortgage financing
Once your buying offer is accepted, the biggest hurdle to clear is getting your mortgage approved. You have likely already been pre-approved, so you are probably familiar with the kind of information your lender will need. However, the official mortgage application is more specific and thorough. It also takes the property itself into consideration, which we will discuss in more detail below. Hopefully, you have made an offer that matches your budget and falls in line with your mortgage pre-approval. This increases the chances of securing mortgage financing without any difficulties or surprises. The approval process is usually fairly quick, so make sure you’re ready to submit your application as soon as your offer has been accepted!
Complete an inspection and appraisal
A home inspection and appraisal are somewhat similar, but they serve different purposes. An inspection is for you, as the buyer, to have the chance to uncover any issues with the home that might affect your purchase. For example, the presence of mold, roofing leaks, or foundation issues are problems that will cost the home owner a decent amount of money to repair. If your offer is conditional upon the completion of an inspection and these items turn up, you can either walk away from the sale or negotiate with the seller in terms of who will cover the repair costs. Home inspections aren’t mandatory, but they are important for both safety and financial reasons!
An appraisal is what your lender needs in order to grant mortgage financing. A home appraiser determines the market value of the property based on things like location, size, and the costs of similar properties in the area. Specific issues within the home aren’t of as much concern. If the appraisal value matches your offer, lenders will often grant you the full mortgage amount. However, sometimes appraisals come in lower than the buyer’s offer. You can read more about what to do in this situation here.
Get your property insurance
Home insurance is important because most lenders require it in order to secure a mortgage. They want to ensure the property they are financing is protected and sheltered against things like vandalism, fires, natural disasters, floods, etc. Plus, this insurance is essential to provide you with peace of mind as well. Your insurance will keep you covered in case of any unfortunate events like those mentioned above. If you are a repeat buyer and currently have home insurance, you can speak to your provider about getting a new quote. If you are a first-time home buyer, feel free to ask your real estate agent about providers they recommend.
Start thinking about some home basics
You will need to set up your home for use when you move in! Since your buying offer has just been accepted, this likely isn’t at the top of your mind right now. However, it’s a good idea to start thinking about some basics like utilities, internet, and mail. You will need to be on the ball to ensure your new home is set up with all necessary utilities by the time you move in. If you are moving from a different property, make sure you cancel any utility accounts associated with that address. Similarly, most of us go online daily. This means it’s always handy to have internet access as soon as you move in. Finally, be sure to notify Canada Post about your move so they can forward your mail to your new address. These are some small items that are easy to forget but are important to complete!
Set up a final walkthrough
Once you are close to your closing date, you should schedule your final walkthrough of your new home. This last visit gives you one more chance to see the home before you are the owner. It is an important step, because you will want to ensure the home looks the same as it did when you submitted your buying offer. If the property has suffered significant damages since then, for example, you will want to be aware of this so you can discuss next steps with the seller. Otherwise, you will be responsible for any repairs, even if they aren’t your fault. This final walkthrough will occur in the days leading up to your closing date, so you have lots of time to plan for it. However, it’s good to have this on your radar now!
Once your buying offer is accepted, it means you are on the verge of owning a new property! As long as you complete all the necessary work that follows this exciting moment, you will be in good shape for becoming the home’s next owner. If you need any support during this process, you can always reach out to your mortgage broker for guidance!
If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.