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Putting Together Your Home Buying Team

June 28, 2022

Buying a home is such an exciting event – but there are many steps involved in making it happen. No one can do it alone! In fact, it takes a team of professionals to work alongside you to facilitate a smooth home buying process from start to finish.

Your home buying team is made up of experts in their respective fields and are to be called in to help at specific times along your home buying path. Here’s what your dream team looks like and how they can help you achieve your home buying goals.

	Mortgage Broker Even before you begin looking for a home, it’s wise to get in touch with a mortgage broker to kick off your home buying journey. Why? Your mortgage broker will be able to connect you with a lender who can determine how much you can afford and secure a mortgage pre-approval. By engaging a mortgage broker as a first step, you will be in a position to target your home search and consider homes within your price range (a step that can save both time and disappointment). Your mortgage broker then becomes your own personal tour guide, there to help simplify the process, reduce your paperwork, and provide guidance on choosing both a lender and a mortgage product that is right for you. They can also help you save money by shopping around and negotiating with lenders to give you the best mortgage rate available. When it comes to finding the best aide in your homeowning journey, MCAP can help you find brokers who are ready to help you reach your homeownership dream by offering choice, advice, service, and savings. Click here to find a broker.
	Real Estate Agent Once you are confident about how much home you can afford, it’s the perfect time to engage the services of a real estate agent. Not only can a real estate agent help you find a home, but they are also experts in the local communities in which they work. This means they can provide insights about the schools, amenities, parks, and restaurants in the neighbourhoods you’re considering. They’ll also be able to tell you what a fair price is for a home, based on the comparable properties in the area. Finally, they’ll negotiate with the seller’s agent on price, closing dates and conditions, protecting you and your interests throughout the purchase process.
	Home Inspector So, you’ve found a home you love. Great! Before you finalize the agreement to buy, however, it’s a good idea to make the purchase conditional on conducting a satisfactory home inspection. This condition gives you the chance to hire a professional home inspector who will thoroughly inspect the property and assess if there are any major defects and/or repairs needed. Sometimes, an untrained eye can’t see issues hidden within a house, so it’s worth calling in an expert. Keep in mind, a home inspection is not always accepted as a condition, especially in a hot seller’s market. Your real estate agent will be able to guide you on whether an inspection would make your offer unattractive in a competitive environment.
	Real Estate Lawyer A real estate lawyer is another integral member of your home buying team. A lawyer will review the Agreement of Purchase and Sale, as well as other legal documents (i.e., if you buy a condo, they will review the Status Certificate, which discloses how much money is in the condo’s reserve). They also conduct title searches to ensure there are no claims registered against the property and make sure the property taxes are all up to date. While you want to engage a lawyer at the time you sign your purchase agreement, you’ll also need them when it comes time to close the transaction (i.e., the day the property becomes yours). At this time, your lawyer will arrange for title insurance, calculate the land transfer tax due on closing, draw up the mortgage documents, ensure all legal and financial conditions are met, and close the transaction so the property becomes legally yours. Lastly, they’ll exchange the keys with the seller’s lawyer and arrange to get them into your hands!
	Mortgage Lender If you’re working with a mortgage broker who has arranged for a pre-approval and matched you with the right mortgage product, you will begin working with your mortgage lender through your broker. Your broker will ensure everything goes smoothly with the lender, guiding you through the transaction. After you have signed the Agreement of Purchase and Sale and the wheels are in motion to finalize the transaction, your lender will prepare the mortgage documents and set up your mortgage for you so it’s ready to take effect once you take possession of the property. If you aren’t working with a broker, your lender will figure more prominently earlier in the process, providing you with a pre-approval and working directly with you to determine a mortgage product that works best for you. They will then set the terms, interest rate, repayment schedule, and other key aspects of your mortgage. As Canada’s largest independent Mortgage Finance Company, MCAP offers competitive rates along with other lending features, to help you finance your next home. Click here to learn more about why you should choose MCAP as your mortgage lender.
	Appraiser When buying a home, an appraisal – which is an unbiased estimate of the value of the home you’re purchasing – is often a requirement to getting a mortgage. A third-party appraiser will evaluate the home to ensure it’s worth what you’re paying for it. This step protects both you as the buyer and the lender’s investment in the loan they are providing to you. Generally, your mortgage lender will hire the appraiser and the appraisal will be completed once your lender has approved your income and otherwise qualified you for a mortgage.
	Insurance Broker Your home is likely going to be the biggest purchase you ever make, so you’ll want to protect your investment with home insurance. A home insurance broker will work with you to purchase a policy that will cover unexpected events or accidents (such as a fire, windstorm, or theft) that result in damage or loss to your home or personal belongings, injury to others who visit your home, accidental damage you cause to someone else’s property as well as personal property stolen from your vehicle. If you’re buying a condo, home insurance is still required, even though the condominium corporation will have a master insurance policy that covers the outside structure of the building and its common areas. Your home insurance policy will cover damage or loss for the inside of your unit and your storage locker. It also covers personal liability claims in case someone is injured in your home. Beyond being a smart decision, home insurance is typically a condition to getting a mortgage – your lender will require you to have a home insurance policy in place before the closing date.