If you are looking to buy a home in the Calgary real estate market, then there are some things that you will need to know before starting the process. Buying a home is a detailed process and you will need to know the basics so you can begin to make intelligent decisions regarding your home buying needs. Here are some of the things that you should know before starting out on the journey.
The home buying experience seems to change just as fast as the real estate market. What may have been true ten years ago may not be the standard in today’s market. But here are some things that will help you through the process.
• For homebuyers, it is required that 5 percent minimum be paid as a down payment on a home. This is the lowest amount that is allowed, but as the price of the home goes up so does the down payment requirement.
• You will find that there are many sources of funds that are allowed to be used for a down payment. You can use your own savings, a monetary gift from a family member, and many other sources.
• You will have to pay mortgage insuranceif your down payment is under 20 percent. This policy protects the mortgage lender from losing their money should the borrower decide to stop paying the money back.
• It is always a good idea to work with a real estate agent. In this market, an agent is paid by the seller of the home so there is no cost to you. Agents can help answer any and all of your questions and they can help navigate you through the harder points of buying a home.
• You will want to do your homework before buying a home. This means looking up properties and touring them before you ever sign on the dotted line to buy the property. You can tour the home as many times as you like, but remember that the home is still on the market which means anyone can buy it out from under you.
• When you make an offer, you will want to make one that the seller cannot help but accept. If there are multiple offers, you will want yours to be the one they pick so make a generous offer.
Buying a new home does not have to be a chore. By knowing what to expect you can make intelligent decisions for your future.