The Mortgage Process
The process of buying your first Nanaimo home can be one that brings great joy; it can also bring great fear in a person. There are so many things that you have to keep up with, and so many decisions that you will need to make on a split second. There are several things that you will need to discuss with your Nanaimo real estate agent when it comes to the mortgage process.
The first thing that you will need to know when it comes to the mortgage process is the amount of your down payment. The truth of the matter is this the bigger the down payment the less you will pay on the actual mortgage and this will also lead to a lower interest rate.
A typical down payment is usually 20% of the total purchase price. If you are not able to pay the 20% then you will want to apply for a high ratio mortgage.
Now there are several things that you will want to consider when talking about a mortgage. Many people are caught because they fail to read the fine print that is most times associated with a mortgage. They are so excited to have their home that they sign first and read later.
If you find yourself to be in this situation then you will need to make sure that you are 100% clear as to what the interest rate will be. Many mortgages will have a very low interest rate the first couple of years then you will be hit with an interest rate from hell out of nowhere.
One bit of advice that will come into being handy is to put down as much as you can for the down payment. Now granted you will have to delay that vacation to the Bahamas but you will be able to rest comfortably knowing that you have a very low interest rate on a shorter mortgage.
Another aspect of the mortgage game is knowing when to apply and when not to, wait for a commercial to come on the air that advertises a low interest rate. That is when you will want to strike while that promotion is going on, just make sure to read the fine print.
The final thing that will factor into the amount you pay is the condition of the house and its depreciation value. If you are trying to buy a new house then you will naturally pay more than a person who is buying a house that will just be a basic dwelling for a family. Things like a pool and other things will add value to the house for the resell but will make your mortgage be that much higher in the end.
Keep these tips in mind when you are in the process of dealing with a mortgage. In addition make sure that you are using the services of a real estate agent that will also help in getting you through the mortgage jungle.
The Basics of Buying a Home in Nanaimo
1. Stay for the long Haul
One of the things that you need to consider when buying your Nanaimo home is, are you going to be able to stay in one location for a few years. If you are one of those people that change locations every so often then it is not the right time for you to own a home. If you decide to sell sooner then you will lose money if you sell too soon.
2. Ensure that your credit is in good condition
More than likely when you go to buy your new home you will need to obtain a mortgage in order to buy a house. You will need to make sure that your credit is in great shape and there are no blemishes on it. In the months before you start your hunt make it a point to get a copy of your credit report and clear up any problems that are on it.
3. Be Real About the Type of Home You can Afford
Be real when you are looking for a new home. The general rule is that you will be able to afford a home that cost about 2 times you annual income. The best advice is to use a calculator online that will give you a better picture as to what you can and can't afford when it comes to a new home.
4. Don't stress about the down payment
There are a number of lenders out there both public and private that if you qualify can offer you a low interest mortgages that will require a very small down payment, or even a no money down option.
5. Make sure the schools are good
Most areas this will be good advice even if your kids are not school aged or if you don't have kids at all. The reason that this is so important is because when you are in the market to sell your house this will be a strong selling point for potential buyers.
6. Get professional help
While the internet gives you a great look into buying a home you will still be best served with the services of a qualified real estate agent. A qualified agent will be able to help you through t the maze of trying to sell your home. It is always a good idea to have a real estate agent in your corner.
7. Get approval before you start your hunt
This is a step that will save you a lot of time and trouble when it comes to house hunting. This will save you from looking at a house that you will never be able to afford and help you negotiate better when an offer is made.
8. Do your homework
When you make your bid be sure to know the selling price of the other homes in the area. This is a step that will help you out on the back end as you will have the knowledge that comes with doing your homework on real estate prices in the area.
9. Have the home inspected
This is the best piece of advice that any potential homeowner will be able to know. It will be important that your home inspector look over the home to help determine if this is a place that you will want to buy and move your family into.