Top Home Buyer FAQs

These are some of the most frequently asked questions by home buyers – questions that people in the Kamloops area are searching for answers right now! I hope that the responses can give you the answers to your questions..

What are the advantages of buying a home?

Owning a home is a great way to build equity, take control of your living situation, and invest in your family and community. One study found that homeowners also report a higher quality of life. Check out the other findings about the social benefits of home ownership in this info graphic from Pinterest.

How much home can I afford?

A good place to start is to estimate your monthly payments will be around 25% of your gross monthly income. That is a safe number that most lenders feel comfortable with, although your credit rating and other monthly debts will be factored in, too. Try using a mortgage calculator to figure out approximately how much house you can afford in different loan and rate scenarios.

Why do I need a buyer’s agent?

A buyer’s agent is committed to working only in the best interests of the buyer – that’s you! Your buyer’s agent knows the local market and will help you determine whether the homes you are looking at are priced fairly. Your agent will also help you cross all of your t’s and dot all of your i’s when navigating contracts and paperwork.

What’s the difference between being pre-qualified and pre-approved for a mortgage?

Pre-qualification is an informal determination by a lending professional that estimates how much mortgage you can afford. This will help you guide your home search to the correct price range.

Pre-approval is a written guarantee by a lender or mortgage broker to grant you a loan up to a specified amount. It is a good idea to get pre-approved before submitting an offer; sellers will take your offer more seriously than an offer from someone who is only pre-qualified.

To see our BLOG article on understanding mortgages click here

What happens if my offer on a home is rejected?

Don’t be discouraged! Sellers will often reject your first offer, but that doesn’t mean you’ve lost the house of your dreams. Now is the time for smart negotiation, which is exactly where an expert buyer’s agent comes in. You may have to offer more money, but you may also get repairs made or the length of the closing period altered. It is not uncommon for negotiations to go back and forth a few times before a deal is made.

Do I need a home inspection?

Before you close on a home and sign the contract, you should get a home inspection to evaluate the condition of the home and make sure you will not be hit with any surprises. No one like to spend the money it take to buy a home only to discover that is needs a new roof or has a cracked foundation! Learn more about what buyers need to know about home inspections.

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