Buying a home is not a “buy now deal with it later” process rather one that should be researched properly before you get yourself into hot water. There is so much to learn and the buyer and seller that are best prepared are the ones that come out on top.
Any time you are ready to make potentially one of the biggest investments of your life such as a mortgage loan take a moment to invest in yourself and your wallet. Buying a home is a confusing, ever-changing process, with a lot of steps along the way. All of those steps can end up costing you in cash and stress, so know where you are headed before you start the house hunt.
Whether buying your first home, refinancing, or selling and buying, the following tips could help to save you money on your next mortgage transaction.
- Speak to your Home Insurance person ahead of time; Lawyers/Notaries are required by the lender to prove you have Fire Insurance, most Insurance Agencies will charge an “Insurance Binder Fee” to supply the lawyer that information. Call ahead and make sure they don’t charge you…or go to a different agency.
- When shopping for the right Lawyer or Notary, ask for the “all in” price. Many make it confusing by saying what their fee is without all the disbursements, tax etc. If you are buying, ask for a quote on the total price of transferring the property into your name and putting your mortgage into place. If you are buying and selling, make sure to specify that you have a current mortgage etc. Being clear up front will save you down the road from surprises.
- Review your current life insurance/disability package with your Human Resources Department at work as well as your Insurance Broker (if you have one) to ensure you have proper coverage. As soon as you have removed subjects on a purchase you are liable for completing the contract, regardless if something happens to you or your spouse. Having sufficient coverage is one area we see consistently that people ignore.
- Rely on experts, not your buddy. We see this all the time with our clients they have a friend who is a carpenter who does their inspection for them, they have an Uncle who is a lawyer do their conveyancing, they have their Aunt act as their Realtor. Too often the Carpenter doesn’t know what he is really looking for, the Uncle doesn’t normally do that type of work, and the Aunt who is a Realtor works part-time on 1 or 2 deals a year. Would you trust a Doctor who is part-time to operate on you? Why trust your biggest financial transaction to people who aren’t experts in their field?
- Do a budget before you move and stick to it! Too many people move in and then decide they need to buy all sorts of things to make their home perfect. Take your time! It’s better to have a list of things you would like to do, and slowly tick it off than to have the whole list complete and not be able to pay your mortgage payments!
- If you buy a new Condo, Town-home or Home, make sure to have your Lawyer review the agreement before you sign. Far too many people sign agreements that are all in the developers favour. If they don’t get your home finished on time what happens? For most, they just have to wait until it is finished, which could cost you for storage, living expenses etc. Don’t be afraid to add in clauses that protect you!
- Have your Realtor, Lawyer and Mortgage Broker review all the closing costs you will be subject to up front, so you know what you are dealing with and can budget for it.
- Always try to buy with future sales ability in mind. Many people buy a place because it is significantly cheaper than something else on the market…usually they had a grow op in them, or something strange that makes them less desirable than another property. The same will apply when you decide to sell it!
- Try not spend the maximum you are qualified for in your pre-approval. It’s easy to fall into that trap, but remember, you want to still have a life even after you move in.
These are of course, just a few money saving tips; there are many areas that you can needlessly lose money when dealing in Real Estate. Having the right Experts on your side will help with most when saving money on your next mortgage transaction. Good luck!
Guest Post By: Michael Anthony Lloyd is a Mortgage Expert with DLC Canadian Mortgage Experts and has been helping Canadians with their mortgages as a Mortgage Broker since 1999. Helping Canadians reach their “Mortgage Freedom Day” sooner is his goal. He writes a Blog called The Daily Dig as well as leading the DLC CME team of 75 brokers.
Photo Supplied by: Michael Anthony Lloyd
Are you NEW to Canadian Budget Binder?
If you are new Start here!
Do you have a Question for Mr.CBB please click HERE to ask him!
Are you on Mr.CBB’s Blog Roll? Check HERE… if not and you want me to check out your blog and add you to my ever-growing blog roll simply click here and fill out the form. Introduce yourself and lets LINK UP!
- Why We Want To Pay Off Our Mortgage Early (canadianbudgetbinder.com)
- 5 Reasons You Won’t Get Out of Debt (canadianbudgetbinder.com)
- Rebuilding Life and Finances After Surviving A Divorce (canadianbudgetbinder.com)
- How We Designed Our Budget Step 10- Projected Expenses (canadianbudgetbinder.com)
- Discounted,Discontinued,Dented and End of Season Sales=Buying Power (canadianbudgetbinder.com)
- Reader Question: How Much Debt is Too Much Before You Need To Budget? (canadianbudgetbinder.com)