Bonnyville Homes Blog

Those who are buying a home for the first time should be aware of certain things before they purchase one. It is always better to remain cautious, especially in an industry you are not very familiar with.

• They must first be aware of their financial condition. First, look at your savings and see how much you can afford to invest in a house. Purchasing a home involves making a down payment before you can take any loan. Careful planning with your savings will tell you how much you can use for a mortgage payment. Have a look at various neighbourhoods to estimate the cost that might incur in transportation etc.
• Consider a safe budget and then start your search for a home that falls under your budget.
• Always have your pre-estimate loan approved for getting a mortgage loan. The sellers will not entertain you without seeing your potential purchasing power. Hence, contact a lender for a mortgage loan. He will see your credit history and give you a report that financial institutions use as evidence of purchase power. They will scrutinize your assets and your liabilities to see if you can still pay the loan instalments properly in time. Spend some time with people who can help you boost your credit ratings.
• Bargain for better loan mortgage. Go to a lender after thorough research. The fees charged varies from institution to institution. Different type of institution like banks, credit unions, merchant bankers, and mortgage brokers carry different rates. Once you have closed in on a  deal, get a pre-approval sanction from them.
• Just because you have got a pre-approval loan does not mean that the loans are sanctioned since other factors are involved like lender risk changes and changes in the investment market. So, keep one or more lender as a backup option.
• Once you know your sanctioned loan limit and your own savings, start looking for an agent who will help you with tasks like inspection and insurance. Make sure you get a good one as you do not have to pay anything to the realtor. The seller will take care of it.
• Search for different sites within the neighbourhood that has everything within walking distance. The farther the home is from the metropolitan, less is the cost. While purchasing away from the city center, don’t just go by the cost of the house. Instead consider other factors like commute options, hospitals, markets, and schools. Include the additional cost you might incur later and then, take an informed decision.
• Having selected a home, calculate once more. Before you finally decide to go through your budget once more, check if you have included the closing costs, transportation costs repairs, and maintenance.
• Bigger homes will need more money and you should be well equipped to take care of the rising gas bills, electricity, and other utilities.
• Once your offer is accepted, get it inspected. You can ask the seller to carry out minor repairs once you get the inspection report.

You can always buy properties through auctions and not go with traditional methods. There are certain benefits of buying a property through an auction. You can acquire it at a discount and chances are that you will face relatively less competition. The drawback is you might have only a limited knowledge of the properties and quote more than what it is really worth. You will have to get an attorney who will guide you through the paperwork and the final sale.

Properties are auctioned when the owners have not paid the mortgage for a few months. A default notice is filed by the bank and if the buyer is unable to renegotiate with the lender, the lender can put up the property for auction. These auctions are usually held by the banks. It is a slightly risky way to buy a property but if you have knowledge about the market the auction process, it is a good way.

Another type of auction is when the owner is unable to pay the property taxes. In this case, the tax authority gets hold of the property and the auction is directed by the local sheriff or the comptroller’s office. These auctions are advertised through local governments and real estate brokers on online auction websites. They do not permit or sanction an inspection of the property. You must go to the estate agents if the property is deteriorated or in a risky condition. You must have a clear understanding of the auction rules and you must check for claims, occupants, and liens before bidding. These auctions take place at the courthouses and conference rooms and sometimes, even online.

Getting All the Information

To find out about the auctions, one must communicate with the local governments or visit the websites. Local brokers can also provide information, but they may not help because they do not earn commissions on such auctions. One can work with the real estate agents, contractors, and appraisers to get an estimate or valuation of the property and even the remodelling cost. You must also be aware that these auctions can be annulled or suspended at the last minute.  You must always be ready to follow the rules of the auction. Do note that you will have to register and pay a deposit which will be about 5 to 10% of the property’s price.

These auctions generally work in two methods. The first is when the lender does not have to accept your offer even if the bidding is the highest and the second is an absolute auction in which the highest bidder wins. Most of the time, these properties are sold at less than their true value. If there is a profit, the homeowner gets it after the mortgages are paid. In order to bid at the auction, you need to bring cash, check, or money order. You will have to pay the whole amount as soon as you win, or you will not be allowed to take over the house.

Before buying a property, you must check up on certain things to make sure everything is in order. This is essential knowledge that you must have before acquiring a property. Before signing the contract, you must ensure that the house has a fundamentally strong structure, is well maintained, and does not have a pest infestation. There are many assessments and checkups that you need to make. Do note that the costs add up to help you understand the correct estimate of the property.

There is no need for you to avoid pre-purchase assessments, though it may save you time and money. If any snags and hitches develop later, you will have to bear the responsibility of paying for repairs and maintenance. An appropriate inspection must be done before negotiating a price. For a better value, these inspections must be done by a competent and skilled expert.

Personal Inspection

A personal inspection is of great value as these give the potential buyers an opportunity to view the property and assess it. You can take someone along with you to help check out the quality and features of the property. You can take a closer look if you like to get the feel of the property. It is advisable to check if the windows and the doors are in working condition and don’t get jammed. Check the taps to see if they leak and look under the sink to check if the plumbing is good.

Look under the carpets to see if there are any rotten floorboards. Try to glance inside the fuse box, switch on all the light switches, and try to figure out the age of the electrical structure. Lookout for any cracks and flaws in the roof, gutters, and the outer walls. See if there any traffic or other sounds are heard from the nearby road. If there is any bad odour or smell coming from an adjacent factory or sewage treatment plant, you can raise concerns.

After the personal inspection is over, you can get a professional building inspection report by a surveyor. The surveyor will oversee the inspection of the structural defects like dampness or cracks. This might be missed out by an untrained eye. The survey will make sure that the building conforms to the building code of land.

Pre-Settlement Inspection

The pre-settlement inspection will let you know if the house is vacant, the property is in good condition, fixtures are functioning, and if any items like microwave or fridge are included in the sale. They can also look at the improvements and recognize unsafe repairs and restorations. Now, you can negotiate after knowing all the pros and cons of the property.

A pest inspector will check if the property is infested by wood-destroying insects like borers or termites. The outside walls, under the floor, and the cavities on the roofs and walls should be checked. Apart from the interior and the exterior, the fence, trees, and flower beds also should be inspected. These building checkups are done before the exchange of contracts so that you can identify the problems, and, in such case, you can withdraw.