A Guide To Buying A House

The lending institution always sees your credit score or FICO scores to determine the loan amount and the rate of interest. A good score will enable you to get the funds with a lower rate of interest as there is less chance of not making regular EMI. If you are gearing up to buy a house, there are some considerations and factors that you must go through. Let’s take a look at what you need to consider.

Credit score: If you are looking for more money to cover the purchase of your house, you need a loan. The better the credit score you have, the easier it is to get the loan approved from the lending institutions.  Before applying for a mortgage loan, it is advisable to get your score boosted.

Budget:  Start saving and see that you do not spend more than 30% of your income on housing. If your savings are less than 20%, then you may have to go in for private mortgage insurance.

Good estate agent: Choose a reputable estate realtor who has many years of experience. They may help you with finding a good lender and inspection authorities.

Mortgage: Get a pre-qualification letter from the lender before you start searching for a house. The seller may insist on this letter as they may like to reassure themselves by knowing who is lending you the money.

Create time to look at the houses: If you have plans of buying a house soon, keep some time aside to visit the house when the agent calls you. The earlier you see the house, the better it is for you.

Signing the contract: Once you like a house, sit down for an agreement regarding the price. Once the purchase agreement document has been signed, it becomes a legally binding document. On signing, advance money will have to be paid, which is usually around 2% of the price of the house. If you fail to pay the balance, the advance would be forfeited. The agreement deed will contain many contingency clauses like the appraisal, inspection, and financing clause. These contingencies allow the buyer to back out later.

Home inspection: The buyer should check the inspectors’ credential as they are ones on whom you are relying on to ensure your investment is worth it.

Review the inspection report: See the report carefully as to the structure of the house, the roofs, HVA systems, and so on. Ensure that no detail has been blown out of proportion or vice versa.

Repair works: In case the house needs any repairs, talk to the seller and get it repaired as soon as possible. This would be at the cost of the seller. The lender might sometimes insist on getting the repair work done before giving the loan.

Final check: Have a checklist and go through it. Ensure all the repair work is done as spelt out by the inspection person. Once everything is in its place, have a meeting to conclude the deal.

Whether you’re looking to buy or sell in the Kamloops area, for a greater probability of success you need a dedicated professional. I can guide you through the process and be counted on to protect your investment!

Categorised in: Buyers, Kamloops, Real Estate

This post was written by kamloopshomesearchcom