Buying your first home – TIPS
Buying a home, for most of us, is usually a onetime affair, so there are not many of us who can claim sufficient experience with this activity to make the transaction happen smoothly.
Now, you can get help from professionals who fully understand the ins and outs of mortgages. At G.A. Farrell & Associates we have a special program, Mortgage Assistance Plan (MAP), available to every client requiring a valuation report to purchase a property, at no extra cost to you. G.A. Farrell & Associates offers expert guidance, garnered through years of experience in the mortgage industry, to help you through the entire mortgage process,
If you are in the market for a new home, here are some of things you should be doing:
- Decide early what you need, in terms of size, remembering to plan for the future before you start looking at homes. For example: - will you need a larger home because –
- Your children are growing up;
- You plan to have more children soon;
- Your elderly parents or in-laws will be moving in with you shortly.
- Get pre-approved from the mortgage-lending-institution of your choice. This way you will know exactly how much you can afford to pay for a home, not only help you with your real estate agent, as they will realize your actual intent therefore trying harder to find you a home that you like. Knowing your budget could also assist in negotiations with the seller since they know the chances of the deal closing are very good.
- Shop around, it is a good idea to look at several homes before making a decision. Besides seeing what is available, it also gives you an idea as to the value of homes.
- Do not be afraid to negotiate, it is the key to getting the best deal possible! Also, if you know why the owner is selling, it may help you in your negotiations. Similarly, do not reveal too much information about your motivation for buying as it could work against you!
When calculating the price of the home, do not forget to cater for Closing Costs on the transaction. These can come up to a significant amount depending on the selling price of the property. For a free estimate of these costs, please feel free to contact G.A. Farrell & Associates.
- When you decide on a property, get a valuation before signing the agreement. If not possible, then try and have a clause inserted in the Agreement that allows you to walk away from the deal, without financial loss, if the valuation report shows a figure lower than the price in the Agreement. If this clause is not there, your loan amount could be affected and could result in your losing your deposit!
- It is very important that you get an attorney before you sign the agreement. Let your attorney review the agreement and advise you if there are any changes necessary. It should be mentioned here that should the attorney that is preparing your Deed of Conveyance or Assignment be the same one that the bank uses to prepare the Deed of Mortgage, then the fees for the latter will be discounted 50% assuming the property does not fall under the Real Property Act (RPA) formerly Real Property Ordinance (RPO).
Buying a home might be the biggest investment of your life and at times, the task can seem very daunting to first-timers. It is a good idea to obtain expert guidance on the different steps and documents necessary, such as offered by the professionals at G.A. Farrell & Associates.