Investing in real estate is not something that should be taken lightly; it is one of the biggest decisions an individual will make in their adult life. Every person, whether they are a first time home buyer or a seasoned mortgage holder, should know the answers to the following questions before they delve further into the real estate market.
Do you know what you want?
The Vancouver housing market can be a very intimidating place, so it pays to know exactly what it is you require: are you going to live at the property or rent it out? Do you want a home with a mortgage helper or not? Apartment or house? How many square feet? Having a clear idea of what you want will allow you to avoid wasting time by looking at the wrong types of properties.
Do you have a down payment?
Having a down payment or not makes an enormous difference when it comes to buying a new home. Specifically, the size of your down payment directly correlates to your ability to obtain a mortgage or convince a lender that you are a reliable client. To be on the safe side, you should consult with your mortgage broker to decide how much you need for a down payment before you get serious about buying a home; it will affect everything from your amortization period to your ability to get everything you need from your purchase. If you don’t have a down payment, you should re-work your budget to accommodate setting aside some money in order to build one up.
What’s your price point?
Many people think that the fact that they qualify for a loan means that they than afford to pay a mortgage every month for years to come. However, people often forget to factor the cost of living in a world class city like Vancouver into their budget considerations. For example, will you have to cut back on your personal spending in order to make your mortgage payments? Have you considered how the additional costs of owning a home, like unexpected reparations or renovations will affect your disposable income? All of these points should be considered, discussed with your broker and lender, and the appropriate adjustments made before you set a price point for your purchase.
Have you found the right mortgage broker?
Often, people think that they can read a few pamphlets or newspaper article to glean everything they need to know about getting the best rate on their mortgage or planning out financing options. This is not a wise approach. The biggest favour you can do yourself is enlisting the help of an experienced mortgage broker with a good reputation and plenty of experience. The two biggest benefits of using a mortgage broker are the time you’ll save not having to sift through mounds of conflicting information regarding the best type of mortgage for any given situation and the money you’ll save because you’ll have avoided common pitfalls that people who do not have the knowledge base of a good mortgage broker often encounter.
Now that you know the most important questions you should be asking yourself before buying real estate in Vancouver, contact us. As an experienced and trusted Vancouver Mortgage Broker, we can help you with all of your mortgage needs.
