Rick Eden 604-854-4888 reden@uniserve.com | Are you a member? Sign Up / Login / why sign up? |
Buying or selling a home is the largest investment most of us ever become involved in. Yet people sometimes take less time over it than they do when choosing a suit of clothes.
That's because it's unfamiliar territory to many of us. We don't know what questions to ask. We may take things for granted, rely on others when we shouldn't, and sometimes we later wish we had known more about the process involved.
The following steps will help you understand the whole process much better.
Before you start looking for a new home in the Abbotsford or Mission areas, it is important that you know how much you can afford to pay. The easiest way to determine how much money you will be able to borrow as a mortgage loan is to consult with one or two lending institutions.
It is generally accepted that a family should spend no more than one-third of it's total gross income on housing. This figure may vary from individual to individual and from bank to bank depending on other financial commitments, but for the vast majority this figure should not be exceeded. Here is a quick way to calculate how much you can afford.
Calculate Your Budget |
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If you have other monthly financial obligations, such as a car or credit card payments, the lending institution will also apply the Total Debt Service Ration test to determine the maximum mortgage loan for which you can qualify.
The total of your monthly housing payments added to your other monthly debt payments should not exceed 40% of your monthly gross income.
Before you begin looking for your new home, it is important that you consider the needs of all the people it must shelter and what effect their daily activities will have on your desire for a certain size or location, both now and in the future.
Thinking about some of the following factors will help you determine where and what you should purchase.
As is the same in any profession, the ability of the real estate agent varies from individual to individual. Your agent will help you locate the house that is most suitable for you and negotiate with the Sellers over price and terms. An agent also writes the offer to purchase and therefore should have a basic knowledge of real estate law.
Selecting the right Realtor is probably the most important step in home buying. When purchasing an Abbotsford or Mission property, you need a realtor with exentive experience in that geographical area. A Realtor with knowledge and experience can save you time and money. When looking for an agent, you should find one who deals exclusively with homes in your area. This realtor should have a solid reputation in the community, and most importantly, this realtor should be known for his/her services.
There are roughly 900 homes on the market in Abbotsford, and approximately 20 new homes enter the market daily. 90+% of these homes are on the Multiple Listing Service computer system.
Once you have determined the price range and gathered an idea of what you are looking for, you can actually start looking for a house. Your Real Estate Agent can now enter your criteria into the MLS computer system and immediately select the houses that meet your criteria.
Real Estate Agents cooperate with other local realtors. Any property that is listed for sale on the MLS system may be sold by any Realtors. Your Realtor will set up the appointments for you to view the selected houses.
Once you have found the property you would like, a written offer to purchase must be prepared. Considering the substantial nature of this investment, you should work with a lawyer, notary public after an offer of purchase is accepted.
An offer is usually recorded on a standard form entitled:
CONTRACT OF PURCHASE AND SALE
What should the offer contain? When you prepare an offer it should contain a number of standard details, plus any conditions which are important to you.
Be fully aware that once you sign this document, and the seller also signs it, a legally binding contract has been formed.
Your offer should include: