Home>>>Buying PEI Real Estate
General Steps in the Buying Process
- Decide the type of lifestyle you want, ie. rural or urban - then determine the area that you want to live in. You should factor in the location of your work, location of recreation, sport and other activities that you enjoy, location of other family etc.
- Determine the monthly payments that you can afford. These are usually a maximum of 32% of your gross income.
- Apply for a pre-approved Mortgage Certificate. This guarantees your loan is in place up to a certain amount and at a certain rate. Your offer will often be looked upon more seriously by vendors if you have a pre-approved Mortgage Certificate.
- Now I will arrange homes for you to visit, matching your requirements with the available homes in the marketplace. You should also attend Open Houses in your area.
- Once you find a home that suits your needs you will make an offer. Your offer when accepted by the vendor is a legally-binding contract, but you may safeguard yourself with "subjects", eg offer subject to sale of purchasers home. I will write your offer for you and it will be presented to the vendor by his agent. The vendor may accept your offer, reject it, or counter-offer.
- After your offer is accepted you will need to arrange a home inspection. You will also need to arrange for homeowners insurance and finalize the mortgage, which will include an appraisal for your lender performed by a certified real estate appraiser.
- You will require a Prince Edards Island lawyer to arrange the conveyancing. The lawyer will work out your share of PEI property taxes, utility bills, including such items as oil left in the tank, etc. On closing day, you will meet at your lawyers office to go over and sign all the necessary paperwork. Remember the cost of purchasing a Prince Edward Island home includes basic purchase price, legal fees, disbursements (out-of pocket expenses a lawyer incurs), closing adjustments (your portion of any pre-paid expenses such as property taxes), mortgage application fees, and appraisal fees.
BUYING PEI REAL ESTATE