Vancouver Home Purchase Approval Process
It’s not as complicated as you think but knowing what to expect beforehand can save you a lot of headaches.
Get your Mortgage pre-Approved
Many mortgage experts recommend that you follow through with the mortgage pre-approval process before you go house hunting. With a pre-approved mortgage you will have all your mortgage and financing paperwork done and know what to expect from a lender.
Additionally, you will be very clear on the price value range of the home you can afford to buy which can save you a lot of time in narrowing your search. A pre-approved mortgage also provides you with a guaranteed interest rate for a specified period of time.
A mortgage pre-approval doesn’t cost you anything and you have no obligation to the lender that pre-approved the mortgage
Home Purchase Approval Process
Now that you have mortgage paperwork completed you can zero in the price range of the home that matches your financial situation. So, what happens when you find that perfect home and what happens next?
Making an Offer to Purchase
The home purchase approval begins with an “Offer to Purchase”. In many instances the real estate agent will assist you with this process. The Offer to Process includes the following information and details:
· The name of the buyer(s), and the address of the property you are making the offer.
· The name of the vendor (the seller).
· Any chattel (any property included with the sale of the home which is not land) such as appliances or a window awning for example.
· Any additional items which are relevant to the home which have been indicated as being inclusive in the sale of the home.
· The amount of deposit that you are putting down.
· A specified closing date for the home (which is the date that you intend to take possession of the home. You should note that after this date you will become responsible for the utilities, property taxes and any applicable repairs and maintenance costs relevant to the home).
· A “Null and Void Date” which means the date when your offer to purchase expires.
· You must also put a request in to perform a property land survey.
· You will also have to include a “Financing Condition” which is the period where you obtain financing to buy the home. This should also stipulate that if you unable to obtain financing then you will receive a full refund of your deposit. In most instances, it is generally recommended that you ask for a minimum of 7 days to secure financing.
You should also include a “Home Inspection” and use the services of a licensed home inspector to make a full and complete inspection of the home. Should the inspector uncover any major problems such as a structural defect or other major problem then you can still walk away without obligation.
You should also be aware that typically this process may have to be repeated several times as many home buyers that make an offer will then receive a counter-offer and will then have to revise the “Offer to Purchase”.