Buying a home is a major project that requires good preparation. Between the loan conditions, the contribution, the budget, the visits to the house, or the loan application. So, without further ado, let’s dive into this blog and discover our 5 best pieces of advice to buy your house well.
1. Study the current loan conditions
Some periods are more favorable than others for buying a home since loan rates are constantly changing. Currently, these rates are interesting since they vary between 1.10% for 7 years and 1.91% for 25 years on average, and they have been relatively stable for several months now.
So study the changes in loan rates, the real estate market trend in the city, or even the neighborhood you are targeting, and watch the price trend to see if this is the best time. In any case, even though prices are on the rise in most major cities, it is still possible to find good deals, for example, by looking at homes that need work.
2. Evaluate your contribution and your budget
In order to know your overall budget, you need to consider the amount of personal contribution you can make. Banks often require a down payment of about 10% of the minimum amount you will borrow to cover notary fees, insurance costs, and administrative fees. Note that in your calculation, you can also take into account any aid you may be entitled to.
Apply for assistance and make an appointment with a bank or a real estate broker who will help you calculate your budget precisely, considering all these elements. Your personal contribution can be made up of your savings, a donation, or small loans or grants for which you are eligible.
3. Be sure to choose the right home for you
Once you know your budget, you can start looking at real estate agencies to find the right home for you. The real estate agent will take note of your requirements and criteria and help you find the homes that correspond to you among the mandates in progress.
When you visit a property that you like, remember to study everything in detail, inspect every corner, and ask questions to the seller so that you don’t miss out on any flaws that could be a problem for you. Take the time to visit the entire neighborhood and come back at different times of the day or even at night. Indeed, you can sometimes discover nuisances at certain times of the day and not at others.
4. Negotiate the sale price of the property effectively
It is normal to want to negotiate the price of a property, and the real estate agent will be able to assist you in this process. In the meantime, if possible, you should be able to explain to the seller why you think the property deserves a discount. Try to show him where you think work is necessary, emphasize the electrical system that is not up to standard, the insulation that needs to be reinforced, the single-glazed windows, the coverings that need to be refreshed, the layout of atypical rooms, etc.
In any case, remain reasonable and refer to the area’s real estate market and the price of this type of housing to know if the price is really overestimated. The signature of a preliminary contract is systematic, but the two do not involve the same rules. Take the time to study the pros and cons of these two pre-contract types.
5. Plan financing adapted to your project
If you have found the home of your dreams and have signed a preliminary contract, you must submit your loan application as soon as possible since you have a period of 2 to 3 months after signing the preliminary contract to obtain this loan. Compare the offers of the different establishments and choose the most suitable loan term. Indeed, you will have the choice between lower monthly payments over a longer period of time or, on the contrary, a shorter loan period and high monthly payments.
Weigh the pros and cons carefully and also study the borrower’s insurance closely to ensure that it is adapted to your profile, and know that you can choose the most advantageous insurance yourself by taking advantage of the delegation of insurance. Use a real estate broker who will find the offer that best suits you: attractive rates and adapted guarantees.
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