The purchase of a home or property can be an overwhelming process.
Your real estate professional will help with everything from acquiring financing, to finding the right home, to ensuring a smooth closing, and beyond.
Since purchasing a home is likely the largest purchase you will make throughout your life, your real estate professional will enlist the services of trusted professionals such as a home inspector, a mortgage professional, a lawyer or notary, and an insurance broker, to lead you through each step of this process.
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Mortgage Professional or Lender Representative
You can acquire mortgage financing through a variety of institutions including banks, trust companies and credit unions. It makes sense to research different lenders because terms and options will vary. Your friends, family and real estate professional will be able to provide a reference for a reputable mortgage providers.
You need a lawyer or a notary to protect your legal interests, such as ensuring the property you are thinking of buying does not have any building or statutory liens, or charges, work or clean-up orders associated with it. Your lawyer will review all contracts before you sign them, especially the Offer (or Agreement) to Purchase. Having a lawyer/notary involved in the process will give you peace of mind and ensure that things go as smoothly as possible.
You should consider having the home inspected regardless of whether it's a resale or a brand new home, by a knowledgeable and professional inspector. Again, your real estate professional or mortgage professional will be able to refer you to a reputable home inspector.
The home inspector's role is to inform you about the property's condition. The home inspector will tell you if something is not functioning properly, needs to be changed or is unsafe. You will also be informed of repairs that need to be made and, quite often, made aware of past problems.
An insurance broker can help you with your insurance needs, including property insurance. Lenders insist on property insurance because your property is their security for your loan. Property insurance covers the replacement cost of your home, so premiums will vary depending on the home's value.
INVESTORS & INVESTMENTS
Now is an ideal time to invest in the purchase of revenue property.
Although the real estate market is constantly changing, rental income typically doesn't waiver - making now an optimal time to start building your revenue property portfolio or continue adding to your existing list of properties.
Real estate professionals offer an invaluable service to real estate investors because they are experts in local marketplaces and can let you know which properties will make for the best investments.
Your real estate professional will work with you in order to determine where you currently stand in terms of your real estate goals, where you need to be to meet those goals, and the steps involved to get you there.
A real estate professional partners with other investment property experts, including lawyers, accountants, insurance professionals, mortgage professionals, and contractors, to name a few, which in turn equips you with an expert knowledge network.
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If you've managed to build up some equity in your home, now may be the perfect time to consider moving up the property ladder.
There are numerous reasons why you may want to consider moving up to a larger home and/or property.
Common reasons include: - having children and outgrowing your space - starting a home-based business that requires a separate office - being in a better financial position than you were in when you made your original purchase - wanting a basement suite that you can rent out - or simply finding your dream home.
Regardless of your reasoning behind wanting to move up the property ladder, your real estate professional can help you through every step of the way. As experts in the purchase and selling process, they will assist you in getting the highest possible price for your existing home and finding a new home that best meets your long-term needs.
When children leave the family home, parents often discover that the home is too large for their needs, and consider downsizing.
Downsizing is a perfect solution to reducing such things as mortgage payments, property taxes, home maintenance, and utility bills. Downsizing also enables you to use the built up equity in your home to put towards improving your lifestyle by freeing you up to travel more, invest in a vacation home or even help your children or grandchildren with their education.
Your real estate professional will help you through every step of the process - including everything from helping you get the highest possible price for your existing home to finding a new home that best meets your needs.
Many first-time home buyers are unaware of their credit rating. You can find out about your credit score through a mortgage professional or lender, or you can also obtain your score online on websites such as Equifax.com
2. Mortgage calculators.
Virtually all mortgage professionals and lenders offer helpful calculators to help you determine how much you can afford to spend on a home based on monthly mortgage payment amounts. Your current income and debts, among other things, are taken into consideration during this process.
Obtain a pre-approvaL
3. Obtain a pre-approval.
Your mortgage professional or lender representative can help you obtain a pre-approval so you know exactly what you can afford to spend on a home.
Determine your down payment
4. Determine your down payment.
Homebuyers today can make a purchase for as little as little as just a few percent down.
Consider closing costs
5. Consider closing costs.
Closing costs must be taken into account when making a home purchase. These are costs above and beyond your down payment and monthly mortgage payments, and include such things as legal fees, property tax and utility adjustment costs.
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