The Ramahi Real Estate Group 780-406-4000

Most people that are selling their property feel that it would be advantageous to hire the services of a good real estate agent. But a large percentage of them also feel that it can be quite challenging to find one that ticks all the boxes. Here are some basic things to keep in view while hiring and working with a real estate agent:

Conduct Some Market Research

It’s important that you carry out some research in your local area. Either walk around or drive through the neighbourhood and keep an eye out for real estate signs (especially ones that have ‘sold’ written on them). Check which agents’ names show up more often on these signs. Many people hire a selling agent based on the recognition the professional has in their community.

Meet with the Agent in Person

Make it a point to walk into open houses in your local area. Pay attention to how the agent deals with potential buyers. It’s also important that you take some time to personally interact with the agent, rather than simply taking a business card and leaving. The aspects to look out for are — a professional attitude and a great personality. Many people find agents at open houses they have attended.

Read Ratings and Reviews Online

Today, it isn’t difficult to find reviews for real estate agents online. Once you have identified a few agents, conduct an online search and read reviews and customer testimonials, check what their ratings are. Read what the agent’s previous clients are saying about the services offered. It’s also important to note the manner in which the agent responds to any negative reviews.

Referrals Are A Great Way to Go

Personal referrals from family members or friends are probably one of the best ways to find a great real estate agent. More than one in five home sellers find agents via referrals from family, friends, colleagues or neighbours.

Meet with Multiple Agents

Interview at least three real estate agents. It’s never a good idea to settle for the first one you come across. A majority of home sellers end up contacting only one agent. However, when you discuss your requirements with multiple agents, it gives you the chance to compare their services, personality, and approach and decide which one you find best suited to your needs. If you have got some referrals, meet with at least three of them and ask them the exact same questions to judge whether you can work with them.

In addition to all these things, it’s also important that you set clear expectations when hiring an agent. Explain what your communication preferences are and make sure the professional is easily accessible as well. Following these basic tips will help you zero in on a real agent that would be a good fit – like us, the Ramahi Real Estate Group!

Whether you’re looking to buy or sell in the Edmonton area, for a greater probability of success you need a dedicated professional. We can guide you through the process and be counted on to protect your investment!

If you are planning to sell your home, it is important to hire the right agent. A good agent has the experience that can help you sell your house faster and for a lot more money as well. You can visit online sites, search for good agents in your area and read some of the reviews that they’ve received from older clients. You can then decide whether you want to hire their services or not. Here are a few questions to ask an agent while selling your home:

What Are Your Qualifications?

The agent you hire should have a state license. If they belong to any local real estate trade associations, they will have access to multiple listing services. This means that they would be able to list your home on various sites which will get it the visibility it needs.

How Many Sales Did You Close The Previous Year?

Even though past success doesn’t necessarily mean you will have a quick sale, it does give you some assurance that the professional knows what he/she is doing. Inquiring about the price range the agent has sold other properties is necessary. You need someone who knows exactly what features buyers in that specific income bracket are looking for.

Do You Have Local Real Estate Experience?

Hiring the services of a local real estate professional can prove to be a huge advantage, as they have the knowledge of all upcoming developments and amenities that may have an impact on the value of your home. You will want the services of an agent who knows the market in your neighbourhood. The agent you hire not only has to sell your house but also your neighbourhood as well.

How Do You Zero-In On The Right Listing Price?

The money aspect and your agents negotiating abilities will decide what listing price will work best in the existing market. If your house is priced much above the market rate it just won’t sell and will be a turn-off for potential buyers. Contrastingly if you price it too low you will end up getting far less than what it is actually worth. Make sure that the agent you hire has the solid market knowledge and has handled sales of properties similar to yours in the recent past.

Will I Be Working Directly With You?

It is important for you to know whether you’ll be working with just one specific agent or some member of his team. There are both good and bad aspects to each; for example, if you’re working with a team of agents, it makes the showings a lot easier. However specific requests which are made by the seller may go unnoticed within a team.

How Much Money Is It Going To Cost Me To Sell My Home?

Knowing the costs that you will end up paying for the broker’s commission, closing fees and any other additional expenses can help you plan accordingly. You can also compare one agent’s charges with another.

What Sales Strategy Will You Use?

Every agent should have a written down strategy for how they are going to market your house, from social media to listing services to open houses. Relying on mailers isn’t enough. Consider using the services of an agent that provides professional photography, a custom designed website or even videos.

What Do I Need To Focus On While Readying My House For Sale?

Take their advice and make additional upgrades or repairs, follow other useful hacks they suggest for impactful yet easy-on-the-budget improvements. If they suggest staging, you might want to consider using it. At times, just de-cluttering and cleaning may get the job done.

What Will Be Our Mode Of Communication?

It’s important to ensure that the agent uses the same mode of communication that you prefer. For example, if you prefer a telephonic conversation over texting, the agent you choose should be able to cater to that need. The communication frequency and method between you and the agent are important aspects when it comes to making a successful house sale.

Getting answers to these questions and any other relevant ones, are crucial to the success of your house sale. Start off with a FREE home evaluation!

Purchasing a new house is one of the biggest investments that one makes. It isn’t just an investment of money, but also of time and a lot of effort. Most people end up staying in a house for a minimum of five years, or in some cases for decades and it’s essential to make the right purchase choice.  It is important to look for a house that suits your lifestyle, family and even your budget. Take a look at how you can make the most of your home buying experience.

Buying a Home

Be Patient

Buyers need to be ready to move quickly when they find the house they like. However, it’s far much more important for the buyer to be patient. Agents help you avoid major pitfalls. Real estate professionals state that if you are prepared and know exactly what to expect (even though it is a stressful and intimidating process), you will have no problem in finding the house you like.

Hire an Agent

Hiring an agent to help in the buying process can prove to be extremely helpful. The agent will ensure that there are no problems with the property. These experts are skilled in negotiating house pricing, which helps you get a better deal. Once you get your pre-approval, look for an agent with local knowledge and one you can trust as well.

Location Matters

The location of the house matters a great deal. Some of the aspects to take into account include, proximity to schools and parks, entertainment opportunities, shopping areas etc. Aside from this, it’s important to make sure that the neighbourhood is safe, well-connected, well-maintained, and suits your lifestyle.

Be Aware Of All Costs Involved

Purchasing a house isn’t cheap and you end up paying for insurance, pre-paid taxes, home inspection, title closing fee and mortgage costs to the lender. This is where an experienced realtor comes in handy as buyers don’t always expect the inspection costs, non-homestead taxes or association fees. Many unanticipated problems may surface at the last minute after an inspection which can end up costing you a considerable amount of money.

Selling Your Home

Here are some tips on how you can make the most of your home selling experience.

Set a Timeline

Homeowners should set a timeline while selling their house. A lot of people try to sync the sale of their house with a relocation or the purchase of another property. A well-maintained and updated house won’t take long to get sold.

Hire an Experienced Agent

Consider hiring an agent who has the knowledge and experience to sell your house quickly and also make the process as smooth as possible. A local agent familiar with the neighbourhood, has deep knowledge about buying trends. They will conduct a market analysis, survey your house and provide professional photography services as well. These are the types of agents you should be working with.

Know How Much Expense Is Involved

Real estate commission, owners title insurance, transfer tax, current mortgage balance etc. are the different costs associated with a home sale. After an inspection of your house, you may have to spend some money on repairs or give some concessions to the buyer.

Have the Right Home Features

Updated kitchens and bathrooms are what the modern buyers desire. However, they also want the house to be practical and function without any problems. Every home buyer will have very specific requirements while buying a home. Most will look for things like large yards, proximity to schools, extra garage space, well-maintained sidewalks etc. While every property won’t have all these aspects in place, it needs to have at least most of these desired features.

Home Improvement Updates and Fixes

Carrying out small and simple fixes will ensure your house will sell quickly. It’s important to create a good impression on buyers by making sure that your house is spruced up and well-maintained. It is a good idea to get your home staged by a professional. The real estate market is very competitive and you have only one chance to make an impression on buyers.

Whether you’re buying or selling a home, one of the best ways to get a great deal is to hire a skilled real estate team like us, the Team Ramahi Real Estate Group! Contact us today to get started on buying or selling in Edmonton. 

Buying a home isn’t something you can take lightly. It’s probably one of the biggest investments you will make your life and you need to ensure but you make a smart decision. One of the best ways to find a great house is to hire the services of an experienced real estate agent. It also very important that you ask the agent certain questions about buying a home. Here are some of them:

Why Is This Owner Selling Their Property?

While the real estate agent doesn’t really have to answer this question, they might give you a hint at what the exact circumstances are. You may be able to find out whether the owner is hard-pressed to sell the property because they need me to move to a different location for a new work position, or due to some other reason. This may mean they are willing to accept a lower price.

Is There Anything Specific I Need To Know About The House?

Most people that are buying a new home are concerned that they may not be aware of a significant negative factor the most others are aware of. For example, very noisy neighbours, a local train station in close proximity, or some other similar aspect that can affect the comfort levels in your home. If you harbour any doubts about a particular property, its best to ask local shopkeepers or even next door neighbours for their opinion.

What’s Exactly Included In This Sale?

Check whether the greenhouse, garden shed or other temporary outdoor features are included in the sale. You also need to check whether the fittings and fixtures are going to be part of it and where the property boundary line is. It’s important that you have clear visibility of what you are buying. It isn’t uncommon for some contents, not to be included in the sale.

How Long Has This House Been On The Market?

If the property has been on the market for three months or more, it crucial that you ask the agent why it isn’t selling. There can be certain problems that other potential buyers have noticed, but you haven’t. Sometimes a higher price tag may be the reason for it languishing on the market. If this is the case, it’s possible the seller would accept a much lower price.

For What Duration Have These Owners Lived In The House?

If you find out that the owners are moving within a very short period of time, it’s necessary for you to find out exactly why. Find out whether there had been any specific problems due to which they are moving.

Has this Property Changed Hands Repeatedly?

If a particular property has changed hands very frequently, that can be an indication of some serious problems. Find out why some of the previous owners moved out. It also a good idea to try to contact them to determine the exact reason for them leaving the place.

How Have you Decided on an Asking Price?

A great agent will always provide you with the reason for the asking price. This will help you make a better judgment. Sometimes, you might be lucky enough and an agent may tell you they feel the seller is overvaluing the property. In any case, it a good idea to visit other properties that are on sale in that same neighbourhood. This would give you a feel of the market price in that area and determine whether what you’re paying is right.

What’s The Minimum Price The Seller Will Accept?

Not many potential buyers realize this, but it important to ask whether the seller is willing to negotiate even on their minimum price. The real estate agents generally give you an indication as they benefit when they are making a sale, albeit at a lower price. It’s very simple really; if they don’t sell, they just won’t get paid.

These are just a few of the questions you should be asking your real estate agent while buying a new home. While it’s a good idea to get these answers from the agent, it also important that you conduct a certain amount of independent research before making your final decision.  Start off on the right foot and let us help you find your dream home today!

Purchasing a home can be quite a complex proposition.  Here we take a look at the steps involved in the home buying process, and what you can do to make it simpler.

1. Deciding To Purchase a Home

You have to make numerous decisions while purchasing a new home. The most important of them being the duration for which you are planning to stay there. It is advised to buy a house only if you are planning to live there for between 2-5 years. In many places, you may find renting to be much more affordable than owning the house.

Aside from mortgage payments, there are many more responsibilities that come with a property purchase such as, paying for insurance, sticking to a budget and also repairs. Consider what reasons are making you more inclined towards buying a home. Tired of renting places and want to have a place of your own? Starting a family? Or trying to make some money in real estate?

2. Checking Out All Your Options

If you are a first-time borrower it isn’t mandatory to make a down payment. However, you will end up saving a considerable amount of money on your mortgage if you choose to make a down payment. Typically, it should be 20% of the price of your house. After evaluating home prices in different areas, you may find some places to be a lot more affordable than others.

Take what experts say into consideration on whether the prices will increase or decrease.  By using a home affordability calculator you can determine how much money you can spend on the purchase. Take a look different mortgage rates and then calculate a few of the basic mortgage options. You can then determine whether the rates will increases or decrease in a couple of years.

If you are confused about whether to opt for a fixed rate or adjustable mortgage rate, speak with a few of the people living in the area that have bought homes in the last few months. Asking them for some advice on some of the challenges they had to face and what tips they can offer may prove to be effective while making your final decision.

3. Get A Mortgage Pre-Approval

First, start off by comparing different mortgage rates online. You can visit websites of online lenders which will help you estimate different mortgage options. You can also evaluate options with a local bank or credit union. A lot of companies offer “pre-qualify” systems that help you estimate what you can afford and what you cant. This is an excellent step for evaluating the different lenders.  However, it isn’t the same as pre-approving. After narrowing down your search to just a couple of lenders, you can then apply for a pre-approved mortgage with each of the companies. Every application causes a drop in your credit score, this is why it’s advisable to apply with moderation.

4. Shop For A Great Home

Compile a list of all the different features that you are looking for in a home, like the number of bedrooms or closets and take this with you every time you visit a house. Looking at different properties each day makes it difficult to differentiate one from the other. Write down notes on every house you visit, this will make it easier for you to make a final decision. Take a note of all places that require repairs and calculate the amount of money it will take you to fix them, this can help when you are negotiating the price of the house.

5. Finalize The Deal

Organize a home inspection, as this is an important step before purchasing a home.  Spending up to $200- 400 on an inspection can bring to light any potentially serious problems in the structure. In fact, you can use the home inspection report to negotiate a better buying price if you are keen on purchasing the property. Evaluate all your homeowner’s warranty and insurance options and look for ones that give you the best deal. Contact your mortgage lender for your final loan approval.

Ensure that all closing documents are in place by getting them reviewed by your attorney or agent. Following these steps is essential to making a smart property purchase. Let us help make your next Real Estate transaction a successful one!

How to Choose the Neighbourhood That Best Suits Your Lifestyle

It is common for first-time home buyers to spend ample time focusing on finding the perfect home, but even an ideal home will be less than perfect if it is not in a great community. Therefore, it’s a good idea for first-time buyers to first invest a bit of energy in searching out the right neighbourhood. Ideally, the local area that is selected will perfectly suit the entire family’s lifestyle, and there are a few factors to consider when narrowing down the options.

The Location of the Community

After buying a new home in a lovely neighbourhood, some people will spend a considerable amount of time enjoying life in their new space. However, all will need to venture out of that small community from time to time. With this in mind, the ideal community is one that is located next to shops, restaurants, medical centers and more that can meet the home buyer’s needs. People will generally enjoy a more relaxed lifestyle when they have access to almost everything needed within a few miles of their home.

The Amenities and Services Available

More than that, the community itself may need to have specific amenities in it. For example, some neighbourhoods have a community center, nature trails, play areas for the kids and other similar amenities. They may also have a far more active community spirit, and the neighbourhood may host parades, picnics, festivals and other local events that can bring residents together. Not all of these are important to all buyers, but some may be far more important than others to certain individuals. Keep in mind that those amenities and services that are not available directly inside the community may be available in the larger community, and the home buyer should consider all of this when deciding where to buy a new home.

The Residents in the Community 

Another point to consider is the general makeup of the community. Some communities may have a quieter ambiance, and this may be more common with more established neighbourhoods that have residents who have lived in the area for years. Other communities may be more appealing to families with younger kids or who are about to start a family, and this may be due to proximity to schools, the kid-friendly amenities in the area and more. Most home buyers will find that they feel more at home living in a community when they choose an area where other residents are in the same general stage of life as they are in.

It can take time to narrow down the choices to find the right community to live in. These factors must all be considered in combination with the type, style and affordability of housing in the community. While some home buyers will search for a neighbourhood on their own, others may find it easier to work with a real estate agent. Ready to learn more about the different type of neighbourhoods in the area that may be most suitable for your needs and preferences? Contact us today!

Selling a home is often harder than what people realize. They often envision that they are going to put their house on the market and within a few days they will have someone that loves their home and wants it for the price that they have listed. That is hardly ever the case. Most people will find that their homes sit on the market for a few months before they find someone interested, and chances are the person is not going to pay the asking price, depending upon how bad they want this home.

For those who are in the process of selling a home, what can you do in order to sell your home faster? Better yet, what can you do that is going to sell this home faster and get you more money for this home? There are several tricks that people are using in order to do just that. And if you use these tricks as well, you may find that your home disappears off the market sooner than what you anticipated, which is always great news for sellers!

Tend to the Outside of the Home

You have heard it before; curb appeal is everything when it comes to making a great first impression. Thisis why you should always tend to the outside of the home to make it look great. This does not mean that you have to invest a lot of money into paint or the like to spruce it up. A few ideas:

• Pressure wash the driveway to make it look great
• Wash down the porches and decks to make these look fresh
• Mulch around the plants that are in the yard
• Mow the yard and keep it looking great
• Clean the outside windows to allow the light to shine in when people are viewing your home

Small Changes Can Make a Difference

Those who are trying to sell their home will find that even the smallest of changes are going to make the difference in getting your home sold faster and for money! Here are several small changes that are not going to break your bank and are simple enough to do on your own that render results.

1. Put new hardware on the cabinets and drawers in the kitchen. This can make even the older cabinets look newer, which is what buyers like!
2. Put in new light bulbs that are higher wattage to allow the rooms to be bathed in light. When a home is lighter, buyers are more willing to buy these homes.
3. Put a fresh coat of paint on the walls, around the doors and the like. Be sure to use a neutral colour so that potential buyers can see just what they could do with this home.
4. Change out the door hinges on the front door and even the knob to give this a fresh look.
5. Put up new blinds in the windows if these are broken or discoloured with age.
6. Be sure to paint the inside of closets a bright white to make them look larger, a large closet is one of the biggest components for several buyers.
7. Put a new welcome mat at the front door…it makes your home appear fresher!
8. Make sure the outlets in the house and the switches are coordinating.

Décor Choices Can Make All the Difference

While you have your own taste in décor, did you know that it is the décor choices that you make that can affect the sale of a home? Many people go into a home that is not decorated in a way that they like, they see a hassle when they see this, and they are not going to buy or even if they do they are going to offer a much lower amount than what the seller wants. Here are a few tricks that can make your home a blank canvas:

• Keep furniture in the home that is bland and very generic
• When painting walls, be sure to go with a neutral colour
• Keep fresh flowers in the home that are white or soft pastel colours as this is inviting
• Get the clutter out of your home…clutter can make a home that is exquisite look like it is falling down!

Clean…and Clean Some More

The best thing that you can do in order to get your home sold sooner and for more money is to clean…and keep cleaning. Be sure that you are:

1. Vacuuming on a daily basis
2. Have carpets and rugs steam cleaned before showing the home
3. Plug in some air fresheners in the home that is going to help it smell clean. Tip: many people find that if they use an Apple Cinnamon smell in the home it will lead to a sale sooner.
4. Ensure that closets and the laundry room are neat and tidy as these are going to be major areas that buyers assess.

When it comes to anything that you do to the home in order to sell this sooner, remember that you do not want to invest more money into the property, as you may not make this back. Thus, keep it simple and cheap when making improvements.

One of the best pieces of advice that you can take is to work with a realtor. A real estate agent has worked in the field and knows what will sell. He or she can walk through the home with you and decide what needs to be done, what can be left and the like. Their goal is to get your home sold, and if you are willing to take their advice you may find that you sell this home sooner and for more money.

For those who are selling, these tips may be one way to get ahead of the competition in the area…and get your home sold sooner! Get in touch today for a FREE HOME EVALUATION!

Why Should I Consider a Home Inspector?

Buying a new home is an exciting time in your life! Whether this is your first home or your sixth home, finding that perfect house and then proceeding with finalizing the details is both exciting and stressful. Any time that you are purchasing a home, you need to be certain of what you are getting. How can you do this? There are several things that you can do to ensure that you are getting a house that is worthy of being your home. However, one of the most important aspects is to have your potential home inspected by a professional.

What is a House Inspection?

An inspection is a process in which a licensed professional look at the home you are interested in and gives you a thorough inspection. He or she may be looking for damage that may affect you later if you were to buy the house. Problems that your mortgage company may not allow for the mortgage to go through. And they are looking for anything that doesn’t seem to be right. Their ultimate goal is to ensure that the house you are considering buying is going to be safe and last for several years to come without any major repairs having to be done.

The Benefits of a Home Inspection

For those people are who are considering a home inspection, they will find that there are many benefits to this and is a wise decision to make. These benefits include:

It can save you money in the long run

The information that an inspector can find from looking through a home can save you money in the long run. For example, while the average cost of an inspector is anywhere from $200 to $500, they may be able to save you around $25,000 of electricity issues that require a complete rewiring of your home.

The information that a home inspector tells you can be used as negotiations.

What if the inspector finds something cosmetically wrong with a home or even damage to the home? This can be something that you use to negotiate down the price of the home since you are going to have to fix this upon living in the home.

Issues found during an inspection can become the responsibility of the sellers.

One of the biggest benefits that many home buyers find with an inspector, is that he or she may point out issues that the seller must fix before you can buy the property. For example, many mortgage lenders are not going to give a mortgage to a couple for a home that needs a new roof or another type of major repair. When you utilize a home inspector, you will find that you can know the information upfront and require that the sellers make these repairs otherwise you walk away.

You will feel more at ease with what you are buying.

For those who think that they have found the perfect home, having an inspector look at this before signing the paperwork, can give you another boost of confidence. When you know that you are getting a home that is worthy of the price that you are paying and that you are going to have no major issues within the foreseeable future, it can make the process even easier for you.

A home inspection can also help when selling your home.

For those who are getting a home inspection for their home before it is sold, they are going to find that this can often give you more selling power in that you can prove that the home is in great shape. Having this information on hand to show potential buyers is a great way to improve your chances of selling your home quickly and for the price that you want.

Aspects That a Home Inspector Checks

One of the most common questions that people ask once they realize just how beneficial an inspector can be for buying or selling a home is what do these people look for in a house? There are several aspects that an inspector is going to come into a home and look at. For example:

• The structural components of the home including the roof, foundation, attic space and even looking at cracks in the floor.
• Exterior faults such as if there is broken seals on the glass windows, is the porch/deck in good shape, is the garage door fully functional, and other elements.
• The roof is examined in detail for loose shingles or if the inspector thinks that this will need to be fixed in a year or two. He or she will also examine the gutter, chimneys, nearby trees and the like.
• Plumbing is tested to ensure that it works properly and is up to code.
• The electrical is looked at it to ensure that it is up to code.
• Heating and air conditioning systems are checked to ensure that they work.
• The inspector looks at what type of insulation is used throughout the home.
• He or she may also look at the appliances in the home to ensure they are functional.

As you can see, the aspects that an inspector checks are vital components to ensuring that you are not only happy in a home but also safe and not making a purchase that you will regret later.

Should You Consider Hiring a Home Inspector?

The answer to this is yes. After all, don’t you want to ensure that the home you get is worth the money that you are paying? The home inspector is one vital element in finding this answer. You will save money in the long run, have better peace of mind, and you are making a smart decision in working with a home inspector before buying a home. Keep in mind that several mortgage companies now want everyone to work with an inspector before they approve the loan!

If you’re looking to buy in the Edmonton Area, get in touch with The Ramahi Real Estate Group.

Buying a home for the first time is exciting, but it’s also daunting. There are countless pitfalls which can become even an experienced buyer, and having the right people around you, to advise you every step of the way, is vital.

There are some very common pitfalls that tend to come the way of a first time buyer more than any other. To help you avoid them, and at least make you aware of them, let’s check out some of the most common.

Listening to Too Many People

Everyone has a story, and everyone thinks they know best. If you listen to everyone, you’re going to get confused, and then you’ll become stressed. Instead, work out who is trustworthy, who is experienced in the real estate world, and listen to them.

Not Being Prepared

Not doing your research is a huge no no for any buyer, but even more so for a first timer. You need to know about the process of finding and buying a house and you need to know what the process is from start to finish. This will allow you to notice if anything is deviating away from the norm, and will also help you find a property for a good price, rather than paying inflated prices because someone sniffed out your inexperience.

Not Knowing What You Want

Having an idea of what you want and where you want it is vital. Which area is your top choice? Do you need to be near schools? What about road links? Are there any areas you really want to avoid? How many bedrooms do you need? Do you envisage a need for more bedrooms in the future? Create a shortlist and this will make the process easier and less time consuming.

Not Having Enough Down Payment

In order to access favourable rates for a mortgage you need to have 20% of the properties price. If you have less, you might not get a mortgage and if you do, you’ll need to pay costly insurance, which will drive up the price of your repayments. You’ll also be offered higher interest rates as a result. Get saving now!

Jumping in Feet First

Always think about any decision you make very carefully and don’t jump because you’ve fallen in love with a property. Try and see it through negative eyes and assess things that way. Sometimes a ‘dream’ can turn out to be a nightmare, especially if you throw too much money at it and end up not being able to afford your repayments.

Walking Away if Your Offer is Rejected

Yes, it’s upsetting when your offer is turned down, but that doesn’t mean you have to close the door just yet. Can you afford to increase your offer? Be careful that you’re not making an emotional decision, but if you really can, this is something to think about. Are they open to negotiation? Again, think about this too. It’s not always a solid ‘no’.

These are just a few of the most common pitfalls that can become a first time buyer in the real estate industry. If you need any help at all, don’t hesitate to contact us at Ramahi Real Estate Group. We’re on hand to help you every step of the way.

When you start to think about buying a home, the number of terms you come across can be confusing. Not only do you have to consider the type of mortgage you’re going to opt for, but you also need to know about down payments.

This is a vital part of the process, because without your down payment in place, your buying process is not even going to get off the ground.

What is a Down Payment?

A down payment is the first part of the cost of the home which you pay as a lump sum when the purchase has been agreed. In order to be pre-approved for a mortgage, you need to prove that you have the right amount of down payment (more on that shortly) in the bank. This proves that you can afford the home, and gives the mortgage lender confidence that you are going to be able to make your mortgage repayments.

A down payment is 20% of the overall price of the property you’re looking to buy. If you have less than this, you may still be able to get a mortgage, but it becomes less likely, you will be offered worse rates, and you will also need to purchase insurance, which you’ll need to make repayments on over a long period of time. It is much more cost effective to save up the amount you need to hit the 20% mark.

Of course, if you can afford more than 20%, even better. This means you’ll have access to more properties, but it also means that your mortgage lender will offer you better rates, which could save you money every month on your repayment amount.

Down Payment Rules

Aside from having the right amount of money saved up for your down payment there is also another rule you have to adhere to. You will not be pre-approved for a mortgage if the down payment has been in your account untouched for less than 60 days. This is the full amount.

The reason is to stop people borrowing the cash for a few days and then withdrawing it and giving it back once the mortgage paperwork is in hand. Mortgage lenders want to know that you genuinely do have the money, because it proves affordability.

In order to stop your finances becoming confusing, it’s a good idea to keep your down payment in a separate account, one you generally don’t touch. You can show this after the 60 days are up, when you go to apply for a mortgage.

Your down payment will then be payable to the person you’re buying the property from, once the sale has been confirmed and paperwork is being exchanged. This will be handed over in one lump sum.

Buying a home for the first, second, or even third time can be confusing, but there is help at hand. Call Ramahi Real Estate Group today, for help, advice, and a range of properties which could include your new dream home.