From Offer to Ownership: A First-Time Buyer’s Timeline to Closing on a House

Surveys suggest that most Canadians agree that home ownership is one of the best investments you can make for long-term prosperity. Indeed, despite a couple of hiccups along the way, housing appreciation has generally been a one-way direction: up. This is true whether you are talking about the Toronto real estate market or the Halifax housing sector.

Since the Bank of Canada (BoC) started raising interest rates, leading to tightness in the mortgage market, many first-time homebuyers have been trying to get their feet in the door. For those who have succeeded in receiving a mortgage and finding the right home, closing on the single-family house, townhome, or apartment is the next step in this long and arduous process.

But what exactly does this entail? Let’s break down the final aspects of your home-buying journey.

Here are the things you need to know about as a first-time buyer closing on a house:

Make Bid Within as Soon as You Can

Sometimes, there is a deadline for all bids to be reviewed simultaneously by the other party’s real estate agent and the seller. In these cases, you will likely need to present a bid within a couple of days of viewing the house. Your real estate agent can help guide you here. While industry experts contend there is always a sense of urgency, and you should not succumb to this pressure, in a hot market, you may not have the luxury of time that you might have in a cooler housing market.

Bidding War? You May Have to Rebid

Are bidding wars making a comeback? During the crisis-era buying frenzy, prospective homebuyers engaged in intense bidding wars that drove up the price by exorbitant sums. These times are gradually returning to the hotter Canadian real estate markets. Therefore, if you are set on buying a specific home, you may have to engage in bidding wars and rebid more than once.

Sign Purchase Agreement

A real estate purchase agreement is a legally binding document that governs the acquisition and sale of residential property between the buyer and seller. Once each side agrees on the terms and conditions of the transaction, it is your time to sign on the dotted line. However, for those in BC, you may have a 3-day cooling off period, and in Ontario, there’s a 10-day period to reconsider when purchasing a pre-sale condo directly from the builder.

The Waiting Game

The closing date was specified in the bid or the purchase agreement. Typically, you will have around two months before closing. In the meantime, you can handle your other housing arrangements: give your landlord notice of vacating, arrange for movers, acquire insurance, notify utilities of your new address, and purchase appliances (oven, refrigerator, or dishwasher) well in advance of the move-in date. Keep in mind that if you’ve never had utilities in your own name before, providers may require a deposit.

Chasing Your Mortgage Lender

Also, during this period, you’ll need to contact your mortgage lender and finalize the paperwork. This must be done almost immediately because there might be hurdles to overcome. And, believe it, there could be hiccups along the way, whether because you are self-employed or incorrectly inserted the wrong date in an application. Ultimately, you must have enough time to complete the paperwork.

Arrange a Walk-Through

The home purchase agreement more than likely allowed for a couple of walk-throughs. This means that you can prepare for your new living quarters, such as measuring windows, assessing paint colours, or taking a closer look at the yard. Additionally, you should have a final inspection on the days before closing. Any walk-through must be made by appointment, and you’ll need to be accompanied by your real estate agent.

Finalizing with Your Lawyer

Like your mortgage lender, you will need to chase your real estate attorney to sign the final papers before closing. Once again, you will need some time to make the final arrangement in case there are issues to overcome, such as if there are troubles with the title search. Insist on title insurance, as this is not always provided by default.

Confirmation from the Other Side

It is here: Closing Day! It’s time to pop open a bottle of champagne and celebrate. Wait a minute. Not yet. You will need to wait for the seller’s attorney to confirm to your own lawyer that all funds have been received. After this is done, you will arrive at your lawyer’s office and pick up the keys.

In most cases, everything comes together on closing day. However, when it doesn’t, things can be tricky if the deal does not close by 5 p.m. Sometimes, you might need to pay extra for movers to store your stuff overnight, and you may have to find a hotel for the night if you can’t stay in your previous place for one more night.

H3 Moving In

If you can, wait to move in a day or week after the previous occupants have left. This would be the best decision because you can manage a more controlled move-in experience. Time will undoubtedly be your friend, as you will not be rushed to perform the basics, such as painting the walls, cleaning out kitchen cupboards, or hiring a pest control service.

Final Thoughts

While the initial steps in the home-buying process can be daunting, the final days heading into the closing date can also be quite a challenge. This is where a real estate agent can be of tremendous help as they can guide you through all the turbulence and possible roadblocks. Instead of playing a game of whack-a-mole in the final stages, you will have an idea of what to expect and prevent you from having any second thoughts.