The Easy Way to Buy Your First Home
First time home buying is close to the most stressful undertaking in life. Obtaining the ‘Canadian Dream’ of owning the first home can be full of good exciting stress or it can be agonizing torture. How you want the process is up to you. You can go it alone with the help of well meaning friends and family or you can put together a winning team of pros including (not limited to) Realtors, appraisers, and a good mortgage professional. A good team can make the experience easier and exciting and the following is a brief look at who’s needed and how they will help.
The Realtor:
Parents do not hire child care, nor do employers hire associates with out an interview, and reference check, nor should you. This will be your team manager, your closest partner. The agent has the experience and the answers to the tough questions. Some advise hiring a duo to always have someone on the job. Although some agents are willing to work for the buyer and the seller, and it is legal, avoid this and find someone who is exclusive to your interests. The agent is an experience negotiator and will become important during the offer process.
Mortgage or Banking Professional:
If you have the credit scores and down payment to be able to get you’re financing with the bank, good for you! That is not as common as it seems so most first home buyers will go through a Mortgage Consultant. Even with the ability to use the bank lender, the Mortgage Consultants have access to a broader base of lenders and can get the best offers for your position. There is more involved than interest rates and monthly payment amount, so the Mortgage Pro you choose should also be interviewed, and the references checked. The best way to handle the process is the get a guaranteed pre-approval which is a great tool for using when while looking for the right house. The inexperienced buyer may get their heart set on a home that is too expensive, or can not be financed for any number of reasons.
Appraiser:
Get a second opinion on the value of the property, again you can use the seller’s but that appraiser is working for the seller and you want to be sure the valuation of the home is accurate.
Contractors, Architect, Designers etc:
Building your first home from the ground up can be exciting, but there are a host of other issues with the project that require expertise. One who can build a frame may not understand the proper material needed for the electrical system. You can pay the contractor who has access to the other tradesmen to finish the home.
Lawyer:
The only people who really know what is in the fine print are the one who wrote the fine print! Get an attorney with real estate experience. A great criminal lawyer who happens to be a friend of your cousin may not notice a small detail that a lawyer who has experience would. Closing procedures are involved and it would be best to have your lawyer there to oversee the wording and all the conditions agreed on in the offer are met. A contractor may not always be honest and having a present lawyer who is working for you may keep that contractor on the job working for you. If an issue with local codes and guidelines for building come up, the buyer already has the right representation.
Inspector:
It is almost certain that unless the buyer is an inspector, a structure, plumbing or electric system problem may be missed. The negotiation process will involve the topic of problems that affect the price or determining if the home can be financed. The walk through at before closing is another good time to have your inspector with you to ensure all conditions have been met. If the first home is being built, the inspector is crucial. There are codes for safety, esthetics, etc; proper procedures and using the proper materials are only some of the issues that arise during the building process.
The first time home buyer usually knows as much as the first time parents caring for a baby. Luckily, for buying the house there are numerous resources to help with the day to day business leaving the buyer to get the best deal for the investment. Most importantly the team members you hired are experienced and while every decision is yours, communicate and work with the team. Find out ahead of the appointment with the Mortgage consultant or the Realtor what they from you and work to ensure you do all you can. You are the most important member of the home buying team.
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Gurmit loves traveling; he has been over 70 countries. He speaks fluent Cantonese, Polish, Hindi, Punjabi and English. Gurmit is an author, writer, insurance and mortgage expert. He frequently writes on various topics of interest to his readers. Gurmit Singh is a licensed mortgage expert with Dominion Lending Centres Mortgage Villa.
Gurmit Singh, MBA
Mortgage Expert (#M08009905)
Dominion Lending Centres Mortgage Villa (#11574)
Email:gurmit@gurmitsingh.ca
www.gurmitsingh.ca
http://gurmittoor.blogspot.com