Free Advice
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“I think everyone should sell their house on their own to save real estate fees, but nobody should ever be crazy enough to buy a house by someone who is selling it on their own, thats just plain stupid.” – anonymous
I guess that means that for sale by owner properties should simply not exist, via the fact that no one should ever buy one.
Popularity: 4% [?]
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Selecting the right mortgage broker is similar to selecting the right realtor. The first thing you want to do is select someone you trust. If you don’t know a mortgage broker personally, find someone who does, and ask for them to put you in contact.
Once you get in contact with your mortgage professional, get to know them a little bit. Ask them questions about how long they have been in the business, what their previous background is, and if they are willing to provide you with the names of a couple past clients that you can call as a reference. If you don’t feel comfortable dealing with that person, then find someone else. Remember, this is likely the biggest transaction you will ever make, so be sure you are comfortable with who you are dealing with.
One thing to really watch out for is a mortgage broker or real estate agent that is over anxious to get you to commit to them. If you feel like you are being pressured to use someone specific, that should be a sign to be a little bit more diligent. Most realtors will have a mortgage broker they like to deal with, but if you feel like the realtor is pressuring you to use them, ask for the names of a couple of other options, they are required to provide you with alternatives. A realtor is not allowed to pressure you in any way to use somebody they know, and you are always entitled to a second opinion. That being said, realtors in many cases choose to deal with specific mortgage brokers because they know that the client will be well taken care of.
A good mortgage broker will never feel the need to pressure you to deal with them, and will always be willing to help you out any way they can. The best rule of thumb as in any other transaction is to go with your gut. Find someone you like and trust, and avoid the tendency to go elsewhere because another broker promises you a better rate. In the long run, the broker you trust will always be able to get you the deal that is best suited to you.
Popularity: 2% [?]
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The two simplest reasons among many are:
a) a realtor deals in mortgages everyday, and thus knows what they are doing. Would you buy your medical prescriptions from a computer store? No, because the computer guy knows nothing about medicine. So why would you buy a house from someone for sale by owner, typically they will know less about selling a house than the computer guy knew about which hand cream will cure your cold.
b) Realtors are regulated and required to maintain professional standards. That means that if they mess up, you will have a prescribed course of action against them, and you will be much more protected than if you bought a house privately.
Buying a house is the most complicated transaction you will ever make, use a professional to take care of the dirty work for you.
Popularity: 2% [?]
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Thats a simple question to answer. The minimum down payment required to avoid needing mortgage insurance is 25% of the purchase price. Thus, if buying a house for $300 000, you would require a $75 000 down payment in order to have an uninsured mortgage.
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That’s a good question. A conventional mortgage is one where the borrower is willing to put down at least 25% of the properties value as a down payment. That means if they are buying a $400000 house, they are borrowing only $300000. A high ratio insured mortgage is one where the borrower puts up less than 25% of the value of the property as a down payment. In this case the mortgage must be insured either privately or through the Canadian Mortgage and Housing Corporation, Genworth Financial, or AIG United Guarantee. If the mortgage is insured, the borrower is responsible for an additional insurance premium, this premium is paid to the mortgage insurer. If someone was to default on their mortgage, the idea is that the insurer would repay the costs to the lender. That doesn’t mean you can default on your loan, it just means the bank is covered. If you do fail to repay your mortgage it will be reflected on your credit and you are very unlikely to get a mortgage again for a very long time.
Popularity: 1% [?]
