Rob Smashnuk

Before you set out to buy a residential or commercial property, you need to know the real estate laws and terms to get a good grip on the discussions with your realtor. Here are a few to start with:

Buyer’s and Listing Agents

When you are buying a home, two agents are involved in the process. The buyer’s agent who represents you and the seller’s agent. Sometimes there is only one agent who represents both the buyer and seller but that is not the ideal situation.

Fixed Rate vs Adjustable Rate Mortgages

For conventional loans, you get fixed and adjustable mortgage rate options.

● Fixed rate, like the name, is a predetermined interest rate that remains the same throughout the loan period (usually 20 to 30 years). This offers lesser risks.
● Adjustable rate offers a variable interest rate (5, 7 or 10 years usually). If you are planning to sell or refinance your home before the introductory period ends, this makes better sense.

Pre-approval Letter

You need a pre-approval letter from the bank before you start house hunting, giving an estimate on the amount they can lend you. This helps you determine how much you can afford and reassures lenders when you apply for a mortgage.

Home Listings

Homes for sale fall under the “listings” category. Home listings on websites throw light on the price and number of bedrooms among other details. Look up realtors who list all homes for sale or you may lose out while selecting from a limited listing.

Home Inspection

Once you place an offer on a home you like, the realtor will help you with home inspection for a certain charge. The inspector will look around the home and review the plumbing, HVAC, foundation walls, and electric appliances. If they find substandard fittings or sense something wrong, the realtor can help you bring down the price. If there are severe concerns, you could reconsider the property to save further costs in repairs later.

Appraisal

Once you apply for a mortgage with a lender, a home appraisal is required to estimate the value. This is done with a comparative analysis of other homes sold in the neighborhood, in addition to evaluation of the neighborhood’s value. If the appraised value falls short of the offer you are making, you might be rejected for your home because the lender will be overpaying. To avoid this, ask your realtor to check out the property and neighborhood value beforehand. When you sell, get an estimate on the worth of your home and find out ways to increase home appraisal value.

Contingencies

When you place an offer for your home, you can ask for certain conditions to met before the deal is passed. This is called contingencies. Inspection contingency is when you ask for inspection of the home. Financial contingency is when you get the finances for the loan. There are many other contingencies that your agent should inform you of.

Rob Smashnuk, West Edmonton Realtor

There’s a lot to deal with in real estate matters. A good realtor can explain matters in simple language and is well connected to reliable service providers. Make sure your home search starts with a good realtor to navigate more smoothly. The Rob Smashnuk team specializes in the Secord neighborhood that is growing in popularity rapidly. Our team has the expertise to help you both buy and sell your home in West Edmonton, every step of the way. Give us a call today.

Only a few people may be able to afford a house without getting a mortgage, which is a loan acquired to buy a home. Federal and private lenders loan you large sums of money and use your house as security. Signing a mortgage means pledging to pay the loan and agree to have your property taken away if you fail to repay the full sum with interest. The loan is referred to as a principal and we are expected to pay the principal with interest throughout the repayment period.

Sources of Mortgages

Mortgages are supplied by banks and brokers. Banks are limited in the products they can offer as opposed to mortgage brokers, who have access to an increased number of services since they work alongside several lenders. On the other hand, your bank is a familiar place for you. The bank will already have your information about your credit scores, income and down payments; all the criteria that need be assessed in order for you to get a home loan. You have established a relationship with your bank and they may guide you in spending efficiently. The choice ultimately comes down to a personal decision.

Pre-approval

Brokers, lenders, and realtors often suggest aspiring homeowners to first get pre-approved for a mortgage. The free service assesses the credit ratings and finances of potential buyers and provides them with an estimate of how much they can afford. Being pre-approved gives home buyers confidence while looking for a home. It narrows down their searches and gives them the information they need to negotiate. Pre-approvals can be done with the help of lenders and it is a good idea to provide them with in-depth information regarding your financial history, in order to get the most accurate estimate of your affordability.

Size of a loan

Home buyers can borrow up to 95% of the house cost and they will have to pay the other 5% in the form of a down payment. The crucial part of searching for homes entails considering the impact payments will have on your life. It is important to realistically go through your budget and consider what fits your lifestyle.

Mortgage plans

The task of choosing the right mortgage plan can be a daunting task for first time home buyers. Mortgage plans may come with an interest rate that varies in accordance with the market, instead of being fixed. First time buyers often choose fixed rate options to avoid running the risk of increased interest rates. However, once they have gotten accustomed to a fixed mortgage plan and monitored the market for a couple of terms, they may feel comfortable switching to a variable plan.

Contact Rob Smashnuk Team in Edmonton!

Getting a mortgage includes making a lot of important decisions. A good realtor can help you make one of the largest financial decisions of your life. Rob Smashnuk, a trusted Edmonton realtor, strives to assist each client to achieve their real estate goals through honest, friendly, and helpful communications and services.

Visit robsmashnuk.com to view all the services we provide. You may also call to chat with us at 780-916-4109.