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Buyer handbookYour guide to purchasing your first or next home

The InnerWorkings ofHome Buying0102030405PREPARATIONFIND YOUR HOME FINAL PIECESSave for a Down Payment | Get Pre-Approved | Find a Real EstateAgent Get an inspection | Find a Lawyer | Home Warranty (Optional) |Make an Offer LEGAL STEPSTitle Search | Appraisal | Final Commitment by LenderUtilities | Final Walk Through | Close of SaleFIND YOUR AGENT Know who is working for you

Preparation01SAVE FOR A DOWN PAYMENTIf the purchase price is... For less than $500,000 the minimum down payment is 5%Between $500,000-$999,999 the minimum down payment is 5% of the first$500,000, and 10% for any amount over $500,000$1,000,000 or more the minimum down payment is 20%03 | PREPARATIONCHOOSE A LENDER This is the first step when buying a home, which will let you know whatyou can afford. Contact your bank or mortgage broker for a pre-approval letter and a guaranteed interest rate hold.MORTGAGE PRE-APPROVALChecklist to bring to the bank: 1. Government issued photo ID with your current address 2. Proof of address & your address history 3. Contact information for your employer & your employment history 4. Proof of down payment (including amount and source) 5. Any savings or investment accounts 6. Details of current debts & other financial obligations

Find Your Agent 0204 | FIND YOUR AGENTYOUR AGENT PROVIDES AN ALLACCESS PASS TO THE MLSYour REALTOR® will set you up with an auto-search gettingyou and your REALTOR® familiar with what you are lookingfor. It is in this process that you will determine your wantsfrom needs. New listings that match your property searchwill be emailed to you just as quickly as it goes to theREALTOR®!You are ready to get yourproperty search started! Set up a timeline for viewing propertieswith your REALTOR®.

Know who isworking forYOU05 | FIND YOUR AGENTWhen choosing to have a REALTOR® represent you in a RealEstate Transaction - you are authorizing your agent to act onyour behalf when writing an offer on a property; this processcreates a legally binding contract between you and a thirdparty (the home seller). So be sure you choose a REALTOR®that has your best interests at heart. The purpose of the service agreement is to outline theservices the company provides, establish a fee arrangementfor the REALTOR®’s services, specify who pays the feeagreement, and clarify what obligations a buyer may have.Confidential information that the buyer shares with theagent remain confidential.Two types ofrepresentation options come into play when anagent acts on your behalf. One is to represent you as a Client,and the other is to represent you as a non-client. You choosehow you would like to be represented in most cases;particular circumstances may dictate which selection will bemade. Your agent will review the Consumer RelationshipDisclosure document to ensure you are well informed.

Loyalty ConfidentialityFull DisclosureObedienceReasonable care and skillFull Accounting Industry Knowledge of the CommunityComparable Properties and sales historyProperty Title06 | FIND YOUR AGENTClient VS Non-Client Act honestlyUse reasonable care and skillMake sure any information given is correctGive guidance on forms and serviceprovidersProvide statsyou can work with a real estate agent in one of the following ways: AS A CLIENT AS A NON-CLIENT your agent will provideyour agent will when you represent yourself

07 | FIND YOUR HOME03Find Your HomeKNOW WHAT YOU ARE LOOKING FORLocation: close to certain schools, shopping, transit, neighbourhood,proximity to workSize: Square footage, number of bedrooms/bathrooms, yard etc.Special features: pool, hot tub, air conditioning, accessibility features. Lifestyle: what kind of services or recreation do you want nearbyType of home: detached, semi-detached, duplex, acreage, condo,apartment Home inspections cost anywhere from 400-600$Ask your REALTOR® if it is necessary to have a WETTinspection done on the houseCHOOSE A PROPERTY INSPECTORCHOOSE A LAWYERThere is a ton of paperwork when buying a home! It is essential to havesomeone working for you who can help you understand all the legal jargon...and protect your best interests!Check the title of the property - proof of ownership & liens against theproperty to ensure clear titleCheck taxes owing on the property before the transfer of ownershipCalculate adjustments that may need to be paid back to the seller orcredited to the buyerAdvise on Real Property Reports vs Title Insurance, Condo Docs, and otherproperty-related documentsA home inspection is an immediate step after the seller accepts an offer.Although it is not required by law, you will gain valuable insight into theproperty's condition. If the sale depends on the home inspection results, youhave a limited time window to complete it.

Once an offer is accepted, the initial deposit is deposited into the trust accountof a lawyer or Real Estate Brokerage and will be applied toward your downpayment.If all conditions meet your satisfaction, it will be time to sign a waiver stating"conditions are satisfied"... There may be an additional deposit due at this time.08 | FIND YOUR HOMEWhen writing an offer on a property, we recommend including conditions offinance and home inspection. In the case of a Condo - add a Review of CondoDocs Condition.Be sure to give your REALTOR® your lawyer and mortgage broker/lender contactinfo. We will send all purchase documents directly to them when your offer isaccepted (If you don’t have a lawyer - ask us for a list of real estate lawyers).MAKE AN OFFER ACCEPTANCE (PENDING PERIOD) Typically you will have around 5 - 10 business days to satisfyconditionsLender will review offer, arrange for funds and an appraisalSchedule the home inspection, if an older home, have thesewage line testedFinalize finances with bankThe Property is now considered SOLD!Our office will convey purchase documents directly tothe seller's brokerage and your mortgage brokerYour Lawyer deals with all legal matters, including thetransfer of title, and ensures that money is transferredto the seller's Lawyer You will meet with your Lawyer to sign papersapproximately two weeks before possessionYou will be asked to bring in the balance of yourdownpayment as your cash to close at this time

04LegalSteps09 | LEGAL STEPSTITLE SEARCHBefore your offer is written a title search will becompleted on the property. This examination covers allrecords of the property’s title history, including deeds,court records, and other documents. The purpose of thissearch is to confirm the seller has the legal right to sellthe property in question, and that there are nohindrances that may prevent the buyer from taking fullpossession.APPRAISALAn appraisal is often required by the lender to ensurethe value of the property meets the value of the loan.Although this is in their best interest, it also confirms youwill not be over-paying for your new home! Typically, thelender contacts the appraiser, and incorporates the feeinto the closing cost.FINAL COMMITMENT FROM LENDEROnce these steps are completed to satisfaction, yourlender will issue a Final Commitment Letter. This lettercovers all loan terms and agreements for the mortgagethey are granting for this purchase. It will also outline allmortgage fees and any stipulations prior to closing.

10 | LEGAL STEPSA Real Estate lawyer should always behired when purchasing a property. Youare making a big purchase, and this isyour opportunity to protect yourinterests! Lawyers offer experience andReal Estate knowledge that is highlyvaluable for this process. YOU NEED A LAWYER!Wait, what?DOCUMENT REVIEW:Your Real Estate lawyer will be able to review anydocuments relating to the purchase of your newproperty. This may include purchase agreements, condobylaws, mortgage documents, deeds, and transferdocuments. They will also conduct your title search! Theseller’s lawyer will be asked to provide the TitleCommitments for review. BUT WHAT DO THEY DO?CLOSING FIGURE REVIEW:Any figures involved in the sale, such as expenses, orexisting liens, encumbrances and any applicableproperty taxes should be reviewed by your lawyer beforeclosing. LEGAL ADVICEYour lawyer will attend the closing to review anydocuments presented to you, the Buyer. They are available to provide advice on any legal decisionpertaining to the purchase, such as issues regarding theinspection and negotiations.

11 | LEGAL STEPSDON’T FORGET ABOUTFINANCINGBefore closing on your new home, thereare some key times you need to checkin with your lender! Do not risk gettingcaught off guard by a refusal to commit.LARGE PURCHASESYou might think pre-approval means you are set to go,but you should avoid making any major purchases thatrequire new financing or increasing your line of credituntil after the close of your home. This includes studentloans, car purchases, or large furniture purchases. Do notrisk losing your mortgage approval! ADDING CREDITDo not open any lines of credit or apply for new creditcards without speaking with your lender first. This willalter your original income and debt ratios that yourapproval was dependent upon.MAINTAIN YOUR CREDITDo not miss any bill payments! This is the easiest way tomaintain your credit during the closing process.LARGE TRANSFERSYour lender may flag your account as suspicious if youtransfer large sums of money between accounts ormake large undocumented deposits. This could risk yourapproval.DO NOT QUIT YOUR DAY JOBYour mortgage approval was dependent upon a stableincome. Do not change jobs during the closing process,or you may be deemed too risky for your mortgage.

FinalPieces05ARRANGE UTILITIES HOOK UPNOTIFY THE POST OFFICE KEY RELEASE 12 | FINAL PIECESCongratulations on your new purchase!ARRANGE PROPERTY INSURANCEHIRE/RESERVE A MOVING TRUCKKeys are usually released between 12 (noon)- 2pm on yourpossession day by your REALTOR®

Bring your valid,government-issuedphoto IDObtain anyoutstandingdocumentsrequired by titlecompany or lenderYOUR CLOSINGCHECKLIST:THE COSTS OF CLOSINGBoth the Buyer and Seller will incur various fees over the course of thesale. For the Buyer, these fees typically include:Mortgage Application feesUnderwriting feesProperty InspectionTitle InsuranceAppraisal fees Property transfer taxes (BC only)Homeowner’s InsuranceNotary or Recording feesHome Owner’s Association or Condo fees, if applicablePOST-CLOSE REMINDERSKeep all your closing documents.13 | FINAL PIECESCLOSING THOUGHTS

J A C K S O N K E N N E D YR e a l E s t a t e A g e n t4 0 3 . 8 2 6 . 1 9 2 5j a c k s o n @ t e a m k e n n e d y . c aw w w . t e a m k e n n e d y . c aCongratulations!Home buying is a major milestone!As your Real Estate Agent, your best interest is atthe heart of what we do. You can trust us torepresent you and guide you through this processso you can have the best possible experience.

Sentinel Storage CentralSentinel Storage - West EndSouth Edmonton StorageTEAM KENNEDY VendorsTRUSTED HOME INSPECTORS Cabin to CastleBook On Line 780.487.7177www.cabintocastle.caTechnologic Inspections 789.499.7672Steve Pentyliukwww.technologicinspections.caMORTGAGES Cynthia Cherie(US & CAD)780.718.1598cynthia@enrichmortgage.ca780.710.0066Mortgage Alliance-Enrich MortgageGroup LAWYERS dleboeuf@mcleod-law.comMcLeod Law David C. LeBoeuf403.254.3873HOME INSURANCE TD Insurancewww.tdinsurance.comAMA Insurancewww.ama.ab.ca1-866-361-23111-800-615-5897CLEANERS | Junk Removal Fussy Cleaning ServicesSunshine Junk Removalwww.fussycleaning.ca780.756.3877780.977.9678STORAGE www.sentinel.cawww.southedmontonstorage.com587-207-4867587-817-8373780-421-1111Stefania Campbell-Fowler(CAD)stefania@enrichmortgage.cawww.sunshinejunkremoval.comwww.sentinel.caJ a c k s o n K e n n e d yT E A M K E N N E D YR e a l E s t a t e A g e n t4 0 3 . 8 2 6 . 1 9 2 5j a c k s o n @ t e a m k e n n e d y . c aT E A M K E N N E D Y . C A

TEAM KENNEDY VendorsTRUSTED MOVING UTILITY COMPANIES The Transport GuysGet Movers Edmontonwww.thetransportguys.cawww.canada.getmovers.ca780-200-29931-888-744-7090Direct Energy - gasEpcor - power/water/gas/wasteAtco - power /gasEnmax EnergyCanada Post - Mail ForwardingShaw - Cable/Internet/ PhoneTelus- Cable/Internet/ Phonewww.directenergy.cawww.epcor.comwww.atco.comwww.enmax.comwww.canadapost.cawww.shaw.cawww.telus.com1.888.224.2710310-43001-844-687-28261-877-571-71111-866-252-98161-888-811-23231-866-918-1626J a c k s o n K e n n e d yT E A M K E N N E D YR e a l E s t a t e A g e n t4 0 3 . 8 2 6 . 1 9 2 5j a c k s o n @ t e a m k e n n e d y . c aT E A M K E N N E D Y . C A

05 |All negotiations for the purchaseand sale of the property arefinalized. The offer is signed byboth parties and you give theagreed deposit amount as a signof good faith.J A C K S O N K E N N E D Y | T E A M K E N N E D YR e a l E s t a t e A g e n t | F a i r R e a l t y4 0 3 . 8 2 6 . 1 9 2 5j a c k s o n @ t e a m k e n n e d y . c aTHE HOME BUYINGAs you prepare to buy a home, I have prepared this flyer that contains a simplified step-by-step visual process on how the home buying process works. You can refer to thissheet throughout the home buying process to guide you on the steps that you will go through from now to closing day. 01 |Get pre-approvedBefore doing anything else, getyour finances in order to makesure that you can buy a home atthis time. Meet with a lender to getpre-approved, prepare your creditscore, and set a budget!Find a Real Estate Agent02 |Meet with a real estate agent anddiscuss your budget, areas andneighborhoods, your schedule toview homes, your timeframe topurchase, and your wants andneeds. 03 |Find your new homeYour real estate agent will scan themarket regularly for suitable listings,they will also set you up on a searchfor properties that meet your criteria.Tour your homes of interest andadjust criteria if necessary.04 |Make an offerOnce you find a home you wouldlike to purchase, you and youragent will work together toprepare the best offer based oncurrent local market trends.Negotiations may occur.Finalizing a contractDue diligence06 |Schedule the home inspection andnegotiate any repair requests andissues found. Meanwhile, yourlender will order an appraisal toensure the property is worth theloan and purchase price.07 |Preparing to moveFinalize your loan and signdocuments with your lawyer tomake sure everything is in orderbefore closing. The day beforeclosing, you may perform a finalwalk-through with your agent.08 |Preparing for closingThe transfer of funds to the sellerand the transfer of ownership toyou will occur. Typically you will getconfirmation of key release aroundnoon to 2pm. Closing day09 |Hire or reserve a moving truck.arrange property insurance andutility hook ups. Notify the postoffice.

Frequently Asked Questions Buyers | Answers What is the difference between a down payment and a deposit? 1.A deposit forms part of your down payment and is used as earnest money when you put in an offer on ahome. Otherwise known as a good faith deposit. It 'holds' the home while you do your due diligence. Onceyou have completed your due diligence and you remove your conditions and move forward with the offer,those monies that are held in trust go towards your down payment. 2. How much of a deposit do I need for my offer?The amount of the deposit is dependent on a few things. The length of time until possession and the valueof the home. The longer the possession and or the larger the value of the home, that will reflect in a higherdeposit amount. Your agent will guide you on the exact amount dependent on your particular offer. Somebelieve a larger deposit is an advantage if you find yourself in a multiple offer situation. This can be true ifall other aspects of the offer were the same but you had a larger deposit amount - then that would be toyour advantage. 3. How much does a home inspection cost and how long do they take?Home inspection rates vary depending on the size of home, whether it is an acreage property and if there istravel involved. Typically for a condo $300-400 and a SDH $600-$800. They take on average one hour for asingle level apartment, 1.5 hours for a townhouse and 2.5 hours for a SDH. 4. What does pending mean? Pending is the term used when a property has an accepted offer with conditions attached to it. Thecondition period is typically about 10 business days. The term pending subject to sale means that aproperty has an offer on it with the condition subject to the buyers home selling before a certain date. 5. What is a subject to sale? How does it work? The term subject to sale means that a buyer has placed an offer on a property subject to his own houseselling for a certain amount and time period. Its like a temporary foot in the door. It's like saying to theseller- "hey I like your home, here's my offer, but first I have to sell my home then I can proceed with thedeal". The seller can still market their home for sale, and accept another offer, they would just have to givethe first subject to sale buyer a 24-72hour notice to waive all of their conditions. If that subject to sale buyercannot waive all of his conditions, then he forfeits his offer and the second offer becomes first position.These can be tricky situations - always consult your agent on what the best strategy is for you and youroffer. 6. What does DOM / CDOM mean?DOM = days on market | CDOM = cumulative days on market 7. When do I need to give my lawyer information to my Realtor/Mortgage Broker?Once you have removed all of your conditions and the offer is firm. Be sure to give your lawyer info to bothyour agent and your mortgage broker in a timely fashion. The sooner the better. 8. What is the difference between preapproved and prequalified?The difference is that the prequalification process is the first step. It gives you a GENERAL idea of what youcan afford and what rate etc. A preapproval is based on the actual financial documents handed in from thebuyer to the lender in order for a more accurate number is calculated and a RATE HOLD is also offered atthat time.

Frequently Asked Questions Buyers | Answers 9. Should I call the list agent directly to view or view with the agent that I am working with? If you are already working with an agent then it is best to go through the home with that agent as theyexclusively represent your interests. Be careful when talking to other agents that you do not disclose anypersonal info that could put you at a disadvantage should you decide to write an offer on that agents'property. Usually people talk too much and end up giving away valuable tidbits that the list agent candisclose to their seller client. 10. How many houses do I need to see before I can expect to 'find the one?'Love at first site does happen in real estate. But what is so funny about that, for the most part people don'ttrust their instincts when it comes to home buying in this regard. Alot of people believe they need to see acertain number of homes before they are 'ready' to buy. While that maybe true - but they end up loosing outon their one true love; that first home they viewed. We see this all the time. Its just part of the journey. So -to answer the question - you can find 'the one' the first time out - it can be a one and done or you can takeliterally years to find a home. Typically, and I use that term loosely, you should be able to find the onewithin 10-12 home viewings. 11. What are some of my closing costs?You will have a mortgage appraisal fee, home insurance or contents insurance if buying a condo, taxadjustment, legal fees, home inspection fee, and utility hook up fees. 12. When do I need to get home insurance?For a single detached home, the home insurance is typically placed on the home as part of the mortgageprocess. if their is no financing then the home owner can place insurance on the home right after finalcondition removal and set the start date for the date of possession. if you are buying a condo then you canpurchase contents insurance in the same manner as with a single detached home. 13. How much does it cost me to work with a Team Kennedy agent to find a home?There is no fee when you work with a agent from Team Kennedy to find a home. Our fee is paid out from thesellers side. 14. What is the length of time a seller needs to or should respond to my offer? You can put a time clause in your offer that stipulates a date and time that you require a response. If youdo not have a time clause a seller and or their agent is expected to respond in kind in a timely fashion. talkto your agent as to where you should put in a time clause in your offer. 15. What are the benefits of working with a real estate agent when looking for a home?You have to remember your real estate agent is in and out of homes all the time. Often times they comeacross properties that could fit your needs but is just outside your scope of searching. Had you NOT beenworking with that agent - you might not have had the opportunity to see that property you never knewotherwise existed. Most would not think this - with everything on line etc. But it happens more times thanyou think! 16. Can I back out of an offer after it has been signed? Once an offer is accepted, with deposit, and all conditions have been removed or waived, then the deal isfirm. At this point the deposit is non refundable. The only time it would be refundable is if the seller is notable to close the deal due to not being able to satisfy a term or terms of the deal and has a legal reason toback out. Or the property is damaged in a fire or act of nature.