You
may want to consider these buying tips:
CALCULATE
WHAT YOU CAN AFFORD
Knowing
what you can afford before you embark on hunting for a new home can
save you a lot of time and put you in a strong bargaining position
to buy the best property for the least money. Getting pre-approved
for a loan puts you firmly in the driver’s seat. Amongst other
things such as interest rates and your credit history, lenders consider
your income and long-term debts when calculating a “safe” mortgage
payment. Typically, a ratio of 28/33 is used in this calculation. Using
this ratio a mortgage payment of 28% of your gross monthly income is
allowed as long as this payment and any other long-term debts do not
exceed 33% of your gross income. Remember - long-term debts include
property taxes, insurance and any Homeowner Association fees on the
new property so don’t forget them in your calculations and don’t
forget to calculate your closing costs.
Our
online mortgage estimator below will figure out your mortgage
payment. Input all the appropriate information, then
click on "Calculate" to see your payment amount,
or click on "Amortize" to see the periodic payment
breakdown. Please note: Actual costs may vary depending on
your lender. This calculator is designed to provide a guide
only.
Do
not use commas when entering values.
Use the Tab key to move to the next box. Do not use Enter.
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SELL
YOUR PROPERTY FIRST
Making an offer on a
new property that is contingent on you selling your own home
first weakens your bargaining position. The seller is unlikely
to want to wait when he or she may get another offer from another
buyer. Even if the seller agrees to your terms it is likely
to be at the full asking price, meaning that you may have to
pay more for the property than you would otherwise. Alternatively,
the seller may set a time limit in which you have to sell your
house which means you may have to accept a lower offer than
you would have to otherwise.
CHOOSE
A NEIGHBORHOOD
Narrowing
your search to one or just a few neighborhoods will save you
a lot of time in the long run. Evaluate your choices with regard
to such factors as property values, schools, traffic, crime
rate, proximity of shops and other amenities, etc. I can help
find the information on which to base your evaluation. To maximize
your property purchase check such factors as whether multiple
offers are being made on the property and what is the average
number of days on the market for similar properties in the
neighborhood. If you can, make a “wish list” of the
things you would like included in your new home and use this
as a guide to evaluating each prospective property. Remember,
however, to consider each property on its own merits such as
layout, location, size, etc. and not on how it is currently
decorated or furnished or any other factor that can be changed
to meet your tastes.
TAKE
YOUR TIME!
For
most of us, buying a home is the biggest purchase we will ever
make in our lives! Consequently it is important to make the
best and most informed choice when making your buying decision.
Don’t rush it! Beware of advertisements that are designed
to generate phone calls and may not give a true or full representation
of a property. We will provide you with the genuine information
you might need to make your decision. Form a working relationship
with us and we will strive to assist you through our knowledge
and experience.We are legally obliged to work hard for you
and protect your best interests. Whether you elect to work
with us or not, we urge you to select a Realtor® to work
with and receive all the rights, benefits and privileges that
this relationship will accord you.
PREPARING
THE OFFER
Working
with Bluff's Real Estate is the best way to prepare your
offer contract. In deciding on an offer price you can rely on
your agent to research the market and provide you with professional
advice. Work out how much you can afford to pay and how much
you are prepared to pay before you present your offer. Too
low an offer just wastes time. The idea is to offer an amount
the the seller is likely to accept or, at least, to counter
with a slightly higher amount.
CONTRACTS
It is important to ensure that
the Purchase Contract contains all the necessary terms and conditions
that reflect your requirements. Again we can help you. The contract
should include the date of occupancy as mutually agreed with the seller.
Include any repairs that you require the seller to perform as a condition
of your purchase and also include any features or fixtures that are
to be left by seller when he/she/they vacate the property. Sometimes
the seller will agree to special financing arrangements in addition
to or as an alternative to a conventional mortgage. This should be
spelled out in the contract. All other contingencies, such as home,
pool, water inspections etc. should also be documented.
CLOSING
COSTS
The "Closing
Date" for your property purchase is the day that you actually
buy your new home. It is important that you understand and can properly
budget for the additional fees you will be asked to pay at closing,
in addition to your down payment, prepaid property taxes and any homeowner's
insurance premiums. These "Closing
Costs" can include, but are not restricted to:
Credit
Check Fees (This is a fee for a credit check on mortgage applicants
and is not refundable, even if you are not accepted for a mortgage
loan)
- Property
Appraisal (This is also nonrefundable)
- Title
Insurance Fee
- Survey
Charge
- Loan
Origination Fee
- Attorney
or Escrow Fees
- Document
Preparation Fee
- Garbage
or Trash Collection Fees
- Points
(These are the upfront interest fees paid in exchange for a lower
interest rate. Each point represents 1% of the loan amount. It
may be possible to have the seller contract to pay the points).
MORTGAGES
Unlike
rent payments, a portion of your mortgage payment builds equity or
ownership in your home. This equity can also help you secure other
loans such as auto loans, a second home or a business loan. Additionally,
mortgage interest payments are tax deductible.
Click
here to use our Mortgage Estimator which
will give you an idea of what your monthly payments will be.
MOVING
TIPS
With
all the paper work complete you are ready to move in! Check out these Moving
Tips to smooth the way to your new home and...
...CONGRATULATIONS!
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