Steps to buy a property

1. Determine your needs

This is the fun part - imagining your new home. What kind of home are you looking for? What sort of home will you need in the future? Define your criteria - Are you looking for a condo or a semi? A small home with a large lot or four-bedroom with a small lot? Are you looking for a new home or resale? Think about the kind of home and the neighbourhood you desire, in order to guide your search.

2. Financing and pre-approval

Once you've decided on the type of property you want, establish how much money you need to buy it and how much you can afford.

In order to determine how much you can afford to spend on your next home, meet with a mortgage specialist at your bank or financial institution who will look at your current financial situation and work with you to come up with a mortgage pre-approval document. This outlines what they will lend you for the purchase. Once you have this document, you can confidently search for your next home knowing exactly what you can afford.

3. Find your next property

Imagining your dream home and finding it, and finding it within your budget, can sometimes be very different things!

Generally we advise people to do some research and look at several houses before committing to a purchase but there are no hard and fast rules. It's important to keep a positive attitude and an open mind throughout your home search. You may need to see 10 to 20 homes before finding the one that is right for you. It's also a good idea to look at the home's ''bones'' rather than the owner's interior decoration when deciding - don't let a seller's current colour scheme and matching drapes throw you off.

However, you must also know yourself and be realistic. Are you a fixer-upper? Or do you enjoy free time without the worry of a project? Think about what is really important to you, because buying a home is often an exercise in compromise and managing expectations: Small lot in a great location or big lot somewhere else? A spacious four-bedroom looking out on railroad tracks or smaller home a few blocks away? Busy street or quiet crescent? Every great attribute in a home will come with some other potential downside. But don't worry - your dream home, the one that feels just right - is out there!

4. The legalities

It's important to hire a lawyer who specializes in real estate. You could find yourself in a bidding war for the home you want, and it doesn't hurt to have a lawyer look over any offer to purchase before you submit it. A real estate lawyer will also conduct a title search and check for outstanding taxes and liens on the property.

5. Make the Offer

You can contact your lawyer for help with filling out the offer document, which can be downloaded (http://comfree.com/buy/documents) from the comfree website or provided to you by the seller. You then present the written offer to the seller. This document includes the price, conditions, deposit and closing date. The seller either accepts, rejects or counters the offer (also called "signing back" the offer).

6. Home Inspection or New Home Warranty

Hiring an inspector is voluntary, but it's a smart idea for resale homes. You can choose to make your offer to purchase the home conditional on the outcome of your inspection. If your inspection reveals major problems, you can negotiate those repairs with the seller before your deal closes, or legally withdraw your offer.

What is a New Home Warranty?

New Home Warranties are typically used when you buy a brand new home. The builder provides a New Home Warranty to cover things like deposits and completion dates, along with labour and materials for at least one year after the home was built. It also protects you against structural problems for a minimum of five years.

7. Finalizing the Deal

Finalizing the deal will include the final approval of your mortgage, a meeting with your lawyer to finalize details like insurance and conditions, and the results of a title search.