As an experienced mortgage brokerage, we want to help you make smart decisions when it comes to buying your first home or vacation home. We understand that your decision to purchase is probably one of the biggest buys you’ll ever make, so it’s important to us to help you think ahead. Here are some tips that will help you make informed buying decisions.
Do Your Research
Before you decide to buy you need to ensure that you’re properly informed about the entire buying process. This will save you lots of time and money. One of the worst mistakes many home buyers’ make is being caught off guard by unexpected expenses. So, don’t let yourself become one of these people.
Take Your Time & Shop Around
You should never hire the first bank, real estate professional or mortgage broker you come across. It’s important to take your time and shop around, get complete multiple pre-approvals and check references. This will open up your options more to ensure that you are getting the best rates, pre-approvals and financial help available to you.
Make Sure You Get Everything in Writing
A popular choice for most people is to hire a mortgage broker. A mortgage broker will provide you with a copy of your pre-approval, actual approval and all other documents related to your purchase. You never have to worry about missing information. However, if you decide to go with a bank or real estate agent, then make sure that any rebates or incentives are included within your written documentation.
Know What You’re Signing
Ensure you fully comprehend what you’re reading at all times, don’t assume. For instance, if you’re signing a buyer representative form, make sure you understand what it is, how long it will last, legal terminology and the definition of any clauses. Don’t be afraid to ask questions or seek out legal advice.
Remember Your Budget
It’s easy to go over budget when buying a new property, people do it everyday. Remembering your budget will ensure that you stay on track with your purchase. So don’t forget:
- To include any legal costs, taxes for land transfers, insurance for your mortgage and utility setup fees
- Costs associated with home appraisals, inspections and surveys
- To include moving expenses, which can vary depending on where you’re moving or hiring professional movers to help.
Protect Yourself with a Conditional Offer
A conditional offer can protect you when it comes to home inspections, mortgage financing or the sale of your current home. These conditions are designed to protect you throughout the entire buying process.
Check Home Systems
You should definitely inquire about the age and condition of all existing home systems, including plumbing and electrical. Your mortgage broker can also tell you if any renovations had the right permits at the time of renovation. Just to be safe, always follow up with a home inspection and ask a lot of questions.
Specifics Matter
When putting your offer together ensure that all of the details you discussed are included. The more details, the better. For instance, iIf you’re requesting specific renovations, derived from a home inspection, then ensure these details are also included.
Have a Bidding Strategy
There is always a possibility that there will be more than one interested buyer putting in a bid on the home you’re interested in, so it’s good to be prepared. With a bidding strategy in place before hand you’ll know exactly what you’re looking for and what your price range is. If you stick to you pre-planned strategy you won’t have to worry about overspending.
Have a Contingency Plan
Create a contingency plan so that your closing date for the new house and your move out date from your existing home match up.
A licensed mortgage broker can help you to navigate through each step of the home buying process and make smart decisions along the way. Contact AKAL mortgages to get started.
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