028: 5 Things You Need To Know When Buying Real Estate

Kyle Miller Shares The Top 5 Things You Need To Know When Buying

Introduction

Make sure your next home purchase is easier with these tips.

Key Points

  • [01:36] Rates
    • High ratio mortgages are any mortgage less with less than a 20% down payment.
    • Anything less requires Mortgage Default Insurance.
    • Un-Insured Mortgage is a mortgage with more than a 20% down payment.
    • A single unit rental (condo, detached home, townhouse) will cause you to have a higher rate.
  • [06:25] Are you more concerned with getting a good rate or getting approved?
    • Getting the lowest rates are possible but the process can take upwards of 2 weeks.
    • Taking the slightly higher rate can be processed within 24 hours in some cases.
  • [09:30] Timing
    • Timing is critical to all aspects of the real estate deal.
    • Avoid putting in an offer when you’re about to go away on vacation.
    • Going out of contact with your broker is a risk to take.
    • Realtors and mortgage brokers work weekends, lenders don’t.
    • 5 days is not a lot of time in the real estate world.
  • [17:24] When is a deal done? 
    • A deal is done when money changes hands with the lawyers.
    • Know what your risks are.
    • What makes a deal go sideways? Not being clear on your income or misrepresenting your income is one of the main reason deals fail.
    • Do as much work upfront as you can.
  • [22:58] Use the knowledge of the people around you. 
    • Communication between the professionals is very important to make sure everyone is working at their best.
    • Avoid giving the money back on closing. This can cause discrepancies with the value of the property.
    • Some of the professionals are working for their client, not you.

 

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