While you can shop for the lowest mortgage rates in Alberta, that is only one factor to consider when buying a home. Whalen Mortgages wants to provide Red Deer home buyers an overview of the home buying process itself.
Step 1: Selecting a Mortgage Provider
Red Deer Whalen Mortgages offers a wide range of mortgage products. We’ll help you find the best mortgage product for your situation. For example, we offer low doc mortgages and best rate mortgages.
Step 2: Pre-Approval
Pre-approval is when you are pre-qualified for a mortgage. The financial institution tells you how much money you’re allowed to borrow and at what interest rate.
Step 3: The Appraisal
At this point, the value of your current home is appraised. This must be done if you’re going to take out a second loan or consolidated loan secured by your home. The house you want to buy must be appraised, as well. We have access to a large network of Red Deer home appraisers, and they give our clients discounts. If the home is worth more than the loan balance you’re approved for, you’ll either have to come up with the difference, shop for a cheaper home, or try to get approved for a larger loan amount.
Step 4: The Home Inspection
If you’re buying a new home, the property needs to be inspected. This will identify issues that need to be repaired before you move in or may need to be addressed soon. You should lower the offer on the home to offset these repair costs. The inspection may find issues that kill the deal such as serious foundation problems.
Step 5: The Offer
This is the step where you make an initial offer on the home. You’re in a stronger position than other buyers because you’re pre-approved for a mortgage. However, the initial offer is only the first stage of negotiations.
Step 6: The Purchase
When the seller approves the offer, the purchase process can begin. As the buyer, you’ll need to finalize your financing. Expect this to take at least a week.
Step 7: The Financing
This is when you secure your new mortgage. This is the time you lock in the interest rate and mortgage terms.
Step 8: The Paperwork
You’ve secured financing. However, there is significant paperwork involved handing money to the seller and transferring ownership of the home. You’ll want to work with a reputable solicitor. Red Deer Whalen Mortgages can help you find a good Red Deer solicitor or send the paperwork to the solicitor of your choice. When all of this is completed, the seller has the money, and you have your new home.
Step 9: Moving
Congratulations on your new home. You should have a date on which you can move in. It is your responsibility to notify people of your new address.
Step 10: The Follow-Up
Mortgage rates change, and so do our financial situations. You may want to refinance your mortgage to secure a lower interest rate or make a large principal payment. You should always shop around when it comes time to renew your mortgage.