A home is not a small investment. It involves making a rather large commitment. That’s why it’s necessary to know how to find just the right place where one can be content for at least several years. Especially since selling can be costly and time-consuming if too soon. These tips provide those buying real estate for the first time with the basics they need to get started.
The first thing buyers should determine is if they wish to buy a house or a condo. The latter are typically more affordable and easier to maintain since a condo-fee covers repairs and upkeep however they also offer less freedom to do as one pleases with the property. A house entails more work on the part of the owner but also generally have fewer restrictions.
Whether buying a condo or a house, it will be necessary to make a minimum down payment of 5 percent of the purchase price. When the buyer pays more than this amount down, it will lower the monthly mortgage and interest payments. One option which can help make securing this down payment easier for many buyers is the ability to withdraw money from their RRSP’s, and then pay it back up to 15 years later without interest.
Obtaining a pre-approval for a mortgage is the next step and involves sitting down with a banking representative who specializes in home loans and reviewing one’s financial criteria to determine the amount one can borrow, amortization period, and interest rate. It’s a good idea to get quotes from several lenders, or hire a mortgage broker to shop around for the best deal.
Those who are new to the real estate market usually appreciate the guidance and assistance a realtor can provide, as well as access to more listings which match their budget and needs. This professional should be dedicated to helping his or her clients find exactly what they are looking for and provide them with daily updates on any new listings that might be of interest to them.
In order to find the right home it will be necessary to work with one’s realtor and identify such details as number of bedrooms and bathrooms, lot size, access to schools, proximity to amenities and so on. The agent will then be able to select neighbourhoods that offer what they are looking for.
When the buyers have found a home they like it’s time for them to make an offer and act fast, in case someone else gets the same idea, resulting in a bidding war. Most buyers will initially make an offer based on the selling prices of other similar homes in the area, the realtor will draw up the offer and will then present the proposed deal to the seller’s agent and if he or she accepts, the house is sold.
Prior to making an offer, it is highly advisable that the buyer enlist the services of an experienced home inspector. This property assessment evaluates the condition of the home and helps determine what a suitable asking price will be. Hiring a reputable real estate lawyer is also an essential part of any successful transaction. This individual is responsible for all final paperwork which make the sale and purchase of the home legal, oversees the transfer of funds, and ultimately is the one who hands over the deed and the keys to the proud, new owners.