Many people think about just the cost and the interest rate at which they can get a loan while buying a new home. However, the lending process in extremely important and there are other costs that you should consider as you prepare to buy any property. As both a licensed REALTOR® and Mortgage Broker, I’ve come up with a few tips to keep in mind while buying a house:
- Have a Trusted Realtor® It is no secret that Realtors® get a cut of the sale price of the house. This makes some buyers hesitant to hire one, believing it drives the overall rate up. The seller and not the buyer pays the commission rate. Listing agents (the agent who represents the seller) in most cases does not have your interests in mind and can simply keep both sides of the commission. It means that you are saving no money. Having a Realtor® in your corner can help you a great deal. The Realtor® will help negotiate the price and also inspect the home thoroughly for any defects.
- Remember That Purchasing a House Involves Contracts There are many papers and documents to sign while going through the process of buying a home. Many of these papers look like standard contracts with no room for negotiation. However, this isn’t true; contracts are meant to be negotiated. There is no need for you to sign a standard agreement. Realtors® come in handy when you require more time for reviewing the house inspection, or wish to have a radon test or need a mortgage approval.
- Focus on Your Future Plans Buying a house is one of the biggest financial commitments that you might make. However, before buying your dream house you should consider these points:
- Do you plan to continue working at your current job?
- Are you getting married in the near future?
- Are you considering having kids?
If yes, based on the market conditions and terms of the mortgage, you will end up paying for your mortgage over the duration of the loan. It’s important that you keep your future plans in view while considering buying a home.
- Keep Commitment in Mind When you are planning to get married the laws generally determine how your assets will be treated & how will they be distributed if you get a divorce. These rules do not necessarily apply when you’re single. You have to think about the future. If you purchase a house with someone who isn’t your spouse, having an exit plan if things don’t go too well is a good idea. Make sure to have an agreement made with respect to mortgage payments, repairs, titling and liability. It is better to take the assistance of a lawyer and get all of this in writing.
Buying a home is a major financial commitment and getting it right is about taking a 360-degree view of your current and future situation and needs. This will help ensure you are able to make the proper provisions while purchasing your home, without straining your finances excessively.
Whether it’s your first time buying a home or you’ve bought and sold property a dozen times before, teaming up with the right Sherwood Park & Edmonton Area REALTOR® is the critical first step in making a great experience.
Sonia Tarabay puts her inner tiger to work for each and every one of her home-buying clients, delivering outstanding 5 Star Service every time. When you’ve got Sonia on your side, buying a home is easier, faster, and way more fun!