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TMG The Mortgage Group Alberta Ltd.

Buying your first home is a big, exciting, and scary experience. Trust me I know, I’ve been there and remember the rollercoaster of emotions. Part of what makes the whole process so scary is all of the things you don’t know, and more than that, all of the things you don’t even know you don’t know. I grew up in the housing industry which gave me a false confidence when it came time to buy a home, there were so many things after the fact that I wish I had known or been prepared for, which is why I now have a special place in my heart for first time home buyers. Based off of my personal experience I work hard to slow the process down so each client fully comprehends what they are signing up for. Beyond that I work side by side with them every step of the way, explaining the process, the terms, and the options available.

So you completed the first step of the home buying process (deciding you want to buy) now it’s time to walk you through the rest:

  1. Pre-Qualification. Contact me for a pre-qualification. Depending on your schedule we can do a phone application, an online application, or an in person application. The application covers areas such as employment history and income, credit score and history, and financials including assets and debts. We compile all of this information to see what kind of purchase price you could afford.  Whether you are hoping to buy in a month or 10 months I always encourage people to come see me sooner rather than later so there are no hiccups along the way.

  2. Customized Plan. Once we have all of that information we look at your particular situation.  We discuss your future plans and what’s important to you in a mortgage. You may be surprised that not all mortgages are created equal; they come with different rates, penalties, and payback options so together we will go through this and make a plan that fits your life.

  3. Contact a Realtor.

    1. Once the pre-qualification is complete either I can recommend a great Realtor or you can find one yourself. They will be incredibly happy when you inform them you’ve already pre-qualified. From here they will show you properties within your price range until you find “the one”.

    2. From there you make an offer. Your Realtor should be experienced in both the market and negotiating ensuring the property is priced appropriately and includes everything you want.

  4. Submit to a Lender – once you make an offer and it’s been signed all the paperwork gets sent to me and I forward it to a lender, which is who will ultimately be lending you money for your mortgage. The lender is chosen based on what we discussed in step 2 about what’s important to you in a mortgage.

  5. Commitment Letter. A common misconception is that the commitment letter means you’ve been approved, this is not the case. The commitment letter is a letter from the lender stating that they have put this money aside for your mortgage and as long as everything meets their criteria they will give you a mortgage.

  6. Underwriting. Once the lender receives the signed letter back they review all of the paperwork we’ve sent them (notice of assessments, T4’s, paystubs, the property info, credit info, etc) to ensure everything meets their guidelines.

  7. Property Inspection & Appraisal. As we approach the condition date the property inspection and appraisal are usually done at this time.

    1. Property Inspection.  I strongly recommend getting a property inspection as they provide peace of mind on the structural integrity of the property and what’s going on in the unseen areas behind walls.

    2. Appraisal. Depending on the down payment amount and the property itself the lender may require a property appraisal to be done. This costs around $300 in the Grande Prairie area and is for the lenders security. It protects them by making sure the property does not cost more than what they are lending.

  8. Financing Approval. After all of the checks have been done and conditions of the offer are met financing is approved. This means that the lender has agreed to fund the mortgage. At this time they forward all of their required documents to the lawyer.

  9. Lawyer Meeting. A week or two before possession date you meet with your lawyer. They collect your down payment and any extra money owing for taxes or fees and go over all of the paperwork with you again. They explain the terms of the agreement, get you to sign everything, and satisfy the remaining lender conditions such as proof of insurance.

  10. Possession Day! On possession day your Realtor will hand you the keys of your new property while the rest of us send our congratulations on the purchase of your new home.