You want to buy a house or an apartment but it is the first time and you do not know how to go about it. Here are 10 rules to follow to avoid missteps.
1 / Calculate your borrowing capacity
Make an appointment with your banker who will calculate, depending on your income and your possible savings, how much you can borrow. Perhaps you will be surprised (in good or bad sense) by what we will announce to you. But in any case, this will allow you to target your real estate search in a price range commensurate with your means.
2 / build up a personal contribution
Banks lend more easily when the borrower has a personal contribution. In addition, it will reduce your monthly repayment accordingly. So if you don't buy now, take the opportunity to save while waiting.
3 / Define the property you need
Depending on the profile of your household (number of children, place of work, lifestyle, etc.), it may be important for you to live near a school and shops or, on the contrary, may -be you dream of living in the countryside and the journeys of you are not afraid. However, think about your life of tomorrow and the cost of gasoline. All this will help you define the type of ideal property and its geographical location.
4 / Visit several properties for sale
You are not used to it so do not rush to buy the first property visited, except, of course, if you have a real love at first sight. By visiting several houses or apartments, you will quickly get into the habit of paying attention to all the important things that should be checked: heating, condition of windows, condition of structure, exposure. If you like a property and you have a doubt about its condition, do not hesitate to come back to visit it with a contractor or an architect.
5 / Know how to see the potential of a property
If the work does not scare you, then do not hesitate to buy a property to renovate. You will pay less for the purchase and in addition, you can renovate it to your liking. Also important: the potential for expansion. If your family is growing, you may not need to move. And during resale, this potential may allow you to make a capital gain.
6 / Negotiate the price of the property
The real estate market is down. Now is the time to negotiate, especially if you have detected faults: a crack in a wall, a poorly insulated house, etc.
7 / Negotiate agency fees
If you buy through a real estate agency, do not hesitate to play the competition between agencies. With the crisis, many of them are in difficulty and agree to lower their costs to keep a client.
8 / Call on a broker
You have found the property that suits you and you are ready to buy. Ask your bank what rate they can give you. In parallel, contact a broker who will compete and can find you the bank and even the agency with the most attractive rate. In addition, he can help you build your mortgage loan application file.
9 / Prefer a fixed rate loan
Be careful with variable rate loans. The monthly payments can be interesting at the start but you run the risk of seeing them increase significantly later. With a fixed rate, you know exactly what to expect. The rate and the monthly payments are fixed in advance for the entire duration of the loan repayment.
10 / Take into account your family situation
You are married, PACS, concubines, you buy on behalf of one or both partners? The ownership and liability conditions may vary. Ask a notary if possible.