Have questions? You’re probably not the only one, so we’ve assembled answers to some of the more frequently asked questions we encounter when buying property in Windsor-Essex and beyond.

What are the first steps I should take when buying a home?

Start by determining your budget and getting pre-approved for a mortgage. This will give you a clear understanding of how much you can afford. Next, consider your needs and preferences for a home, such as location, size, and property type.

What is a mortgage pre-approval, and why is it important?

A mortgage pre-approval is a crucial step in the home-buying process. It’s a lender’s commitment to provide you with a loan based on your financial situation. This not only gives you a clear idea of your borrowing power but also helps streamline the buying process. Moreover, it shows sellers that you are a serious and prepared buyer, giving you a competitive edge in the market.

How do I find a real estate agent?

When it comes to finding a real estate agent, it’s not just about their knowledge of the area. It’s about finding someone you feel comfortable working with, someone who will be your trusted representative throughout the buying process. Whether you find them through referrals, online searches, or local offices, your agent will guide and support you every step of the way.

What do I need to know about making an offer on a home?

When making an offer, consider the current market conditions and pricing of similar homes in the area. Your Royal LePage® Binder agent will help you draft an offer that includes the purchase price, conditions (like financing or home inspections), and a closing date. They’ll also serve as a source of advice and be your primary negotiator throughout the purchasing process.

What are common conditions included in an offer?

Common conditions include obtaining financing, completing a satisfactory home inspection or providing for testing of rural property water and septic systems, obtaining insurance, and giving your lawyers time to conduct reviews of the property title. These conditions protect you from potential issues arising during the buying process.

What is a home inspection, and do I need one?

A home inspection is a certified inspector’s assessment of the property’s condition. It’s highly recommended as it provides valuable insights into potential repairs or issues, helping you make an informed decision.

What are closing costs, and how much should I budget for them?

Closing costs are expenses incurred during the closing of a real estate transaction, typically ranging from 1.5% to 4% of the home’s purchase price. They can include legal fees, land transfer taxes, home insurance, and adjustments for property taxes.

What is land transfer tax?

Land transfer tax is imposed by provinces and territories when you purchase a property. The rate and calculation vary by location, so checking the rules specific to your province is important. To help you, Royal LePage® Binder has provided a handy Land Transfer Tax calculator on our website.

What do I need to know about homeowner insurance?

Homeowner insurance protects you from financial loss due to damage, theft, or liability. Before closing, you must secure a policy and provide proof to your lender. Shop around for the best coverage and rates, and be prepared to answer questions about the property you’re buying.

How long does the home-buying process usually take?

The timeline can vary, but generally, the buying process takes between a few weeks to a few months. It depends on various factors, including finding the right home, negotiation, financing approval, and contingent items such as home inspections.

What happens on closing day?

Before closing day, you’ll meet with your lawyer or notary, review and sign final documents, and make arrangements to pay closing costs or remaining deposits. Your lawyer will be responsible for transferring ownership of the property from the seller to your name, registering any mortgage documents, and securing keys to the property. Once everything is completed and closed, you’ll receive the keys to your new home!

Can I back out of the purchase after making an offer?

You can back out if your offer includes conditions that have not been satisfied (like financing or home inspection). However, if you have removed conditions or are just changing your mind, you may be subject to consequences, such as losing your deposit.

Do you have more questions about the home-buying process? Feel free to contact any Royal LePage® Binder REALTOR®!