From Dreaming to Owning: A Step-by-Step Guide to Buying Your New Home

1. Make Sure Your Emotions Are Settled Before Settling In

Sure, you must be financially ready for the big purchase (scroll down to Steps 2,3, and 4 for that). But are you sure you and your family are emotionally ready for the homeownership journey? Your heart should be on the same page as your wallet.

Maybe you want to look at homes for sale in Hamilton because of the comparatively affordable prices than in Toronto but your wife has her heart set on living in the 6ix. If you and your family are not on the same page emotionally on this decision, you may end up regretting your choice later on.

2. Take a Look at Your Credit Score

Now comes the part when you must check if you are financially ready to buy a house for sale in Hamilton. To do that, request your credit report from Equifax or TransUnion.

Your credit score will determine whether you will qualify for a loan, the type of loan, and what interest rate you will receive. The minimum credit score required to qualify for a conventional loan is 680.

3. Figure Out Your Home-Buying Budget

After you are done checking if your credit score is in good shape, it is time to test the waters of your wallet. Without a clear idea of your budget in mind, you may end up wasting hours looking at houses for sale in Hamilton that are way out of your price range.

Carefully factor in all the expenses that you have to shoulder while buying the home. Make sure to include long-term costs such as homeowners association fees and maintenance costs along with down payment and mortgage payments. Just because you can afford the down payment on the house doesn’t mean you can afford the property maintenance costs too.

4. Start Stashing Cash for That Down Payment

Once you get an idea of your home spending budget, start saving for the down payment. The down payment should be usually 20% of the price of the home for sale in Hamilton. But if the purchase price of the home is less than $1 million, you can seal the deal on the property with a 5-10% down payment.

5. Pre-Approve Your Mortgage

Before stepping foot in the Hamilton real estate market to search for homes, make sure to get the mortgage pre-approval. A mortgage pre-approval sends a signal to the home seller that you are a serious buyer and gives you an edge as a buyer in the market. It also allows you to complete the homebuying process faster as you will already have the mortgage paperwork in order.

6. Find an Expert Real Estate Agent

You need a professional real estate agent by your side to find the perfect home in Hamilton for sale and get the best price deal. This is why make sure to join hands with the right brokerage firm before house hunting.

When hiring real estate agents, don’t just go with the first name you find. Research online for “best brokerages near me”, meet with at least 2-3 of them and go ahead with the one who you feel can help you find your dream home.

7. Start Hunting for Houses

Now that you have an expert to guide you, you can start shopping around for “houses for sale in Hamilton near me.” Make sure to prepare a list of the features and amenities you want in your new home and neighbourhood. This way, you can easily narrow down your search to the specific style of home, number of rooms, and other amenities when looking for homes on the MLS.

Once you find 2-3 properties that catch your eye, take a tour of them with your real estate agent. Tours let you envision your future life in the property and if the property will be the right fit for you.

8. Toss in Your Offer for the Ideal Home

Found the perfect house of your dreams in the best neighbourhood? It is time to seal the deal on that home in Hamilton for sale before another buyer snatches it away from you.

To put in an offer for the house, have a talk with the real estate agent: Is the price of the home fair or way above the line? Is there any room for negotiating the price of the home? The licensed Realtor will know the conditions and trends in the housing market. They will consider your budget and the comps in the area when suggesting a price offer that will stand out to the home seller.

9. Get the Green Light for Your Home Loan

Since you already have the pre-approval, this step won't be much of a hassle. Only the underwriting process for the home for sale in Hamilton will take time. In the underwriting process, the mortgage professional will thoroughly review your finances and credit to verify that everything is in order.

10. Inspect Your Future Home with a Professional

One of the most crucial steps while buying a house in Hamilton for sale is home inspection. The property you have set your eyes on may have structural, electrical, or plumbing issues that are not visible to the naked eye. To catch those issues and properly assess the home’s condition, you will need to hire a professional home inspector.

The home inspector will check out the operational status of all the major systems in your home such as the roof, foundation, and exterior. If any major issues are found in the home during the inspection, you can lower the home price.

11. Have Your Home Appraised by Experts

During the home appraisal process, the value of the home for sale in Hamilton is assessed by an expert third-party appraiser. Once the appraisal is done, you will receive a complete report of listing property details and local market sales.

This will help you understand better if the value of the home put forth by the seller is accurate or not. If you find that the price tag of the house is more than the value given by the appraisal professionals, you have the right to negotiate.

12. Perform a Title Search of the New Home

Title companies usually perform a title search on soon-to-be-sold homes. This is to determine if the seller is the legal owner of the property and that there are no liens on the title.

There are many fraudsters in the market who falsely claim a property as their own and try to sell it to homebuyers. So, if you do not want legal troubles in the future, make sure not to skip this step in the homebuying process.

13. Complete the Closing Process and Get the Keys to Your New Home

On the closing day, money will be exchanged and the title of the house for sale in Hamilton will be transferred to your name. A title company or a real estate attorney usually closes the transaction of a home.

After the endless steps and paperwork, you have finally got the keys to your new home. Congratulations on this amazing milestone!