The Buyer has made an offer and the seller has accepted. The Buyer must now complete a number of tasks to ensure success.
Deposit: First, the buyer must submit a deposit.
Mortgage: Visit the mortgage broker or lender to secure the mortgage. It is advisable to stay in touch with the mortgage broker or lender until the closing date. Occasionally circumstances change and the Buyer may be suddenly without a mortgage just days before the closing.
Conditions: If there are conditions in the offer, the buyer will have a few days to waive them. These conditions often include completion of a home inspection and the securing of financing.
Property Insurance: Select and secure property insurance – don’t wait until last minute. Property insurance is required by the mortgage lender. Sometimes it will be difficult to find an insurer. For instance, insurers don’t like houses with knob and tube wiring, galvanised plumbing, or old or underground oil tanks.
Arrange for movers: Do your research to find a good mover. Movers are harder to find at the end of the month when most people are moving.
Money for Downpayment and Closing Costs: Have your funds ready to be transferred and plan ahead. You’ll avoid paying penalties for withdrawing funds from other investment accounts if you plan ahead. Also some internet savings accounts require 24hrs+ to transfer funds into a chequing account. Transfer money from the Home Buyer Plan if applicable. Get your estimated closing costs from the lawyer in advance.
Sign final closing documents: Sign all documents with your lawyer. The Buyer and seller do this separately.
The Key: The key is usually delivered to the Buyer’s lawyer after the Seller has received payment. The Buyer often has to wait until 5:00pm on the day of closing. This can be a problem if your movers are waiting and you are paying them to wait.