Five Tips To Help You Negotiate Your Home Purchase

Author: Shirl Funk | | Categories: First Time Home Buyer , Home Loan Calculator , Mortgage Broker , Mortgage Payment Calculator , Mortgage Rates , New Construction Financing


While the pandemic came about with much uncertainty, many people began considering moving from the city back to the country. There were rules that people could not work from their offices anyway, so most thought they would rather give up their homes and work remotely. 

On one side, there was a massive requirement for homes, and on the other, people were looking to stop spending their money on larger purchases because they were uncertain about the future. Additionally, many considered moving to a smaller apartment or switching to another city. With a large number of people out of work, they were considering purchasing their homes themselves and coordinating their deals so they would save some money. However, there were a few challenges that they had to get through.

We recommend that people work with mortgage brokers because they would be able to get everyone a better deal than the one they would get themselves. They have a lot of information about markets, which locations cost because some places cost a lot more than others which is relevant when you are making the purchase. We thought that we would document some of these changes so they could benefit people getting through the process.

Tip #1: Complete a detailed application with your mortgage broker
We always tell our clients that they should be a part of the application process. There are many questions that clients ask a mortgage broker who would assist with them all. However, they should make sure that they are informed and a part of the process otherwise it would not go anywhere. For the people who do not have a mortgage broker, we insist that they allow us to appoint one for them. They should go through the information and make sure that they read everything when they are getting through.

Tip #2: Your broker will also require a list of detailed documents
The best practice is to submit all required documents as quickly as possible. Work with someone who went through the process before. They would know about the information needed and be in a better position to assist. If you try to get through it yourself and miss out on one of the papers, you would have to start again, which can be frustrating. The best way to get through is going through a list, and getting the information from someone who went through the process before.

Tip #3: Give your broker a detailed plan on the type of home you are seeking to purchase
Whether your first or second home, who will be living there, what plans you have, do you plan on staying in the home for only a few years, do you wish to make any changes to the property; i.e.: adding a garage or changing flooring, etc., so they can understand your needs better. You can also talk to them about finances, like the monthly budget you feel you can manage, whether you prefer fixed or variable rates. Depending on your relationship with your mortgage broker, they would tell you whether the investment is wise or not, considering all the factors, or if there is a way you could find a better alternative to serve the purpose and be cost-effective in the long run.

Tip #4: Ask your mortgage broker about legal and closing costs
Be sure you fully understand all costs upfront to not be caught off guard later. There are some costs and fees that you might not know about. There are also some fees you might not have to pay and might be added to you because you were not informed better. We would suggest talking about the process and the fees with your broker and even getting a clear understanding of their payments and their terms which would assist with getting you through the process.

Tip #5: Understand the importance and need for fire insurance
Your mortgage broker will explain the importance and need for fire insurance which might be a requirement by the lender. If you do not already know a fire insurance broker, contact your mortgage broker to introduce you to one. You do not always need insurance because it is not always mandatory, but they are important and there are times when you would regret not having one. While there are a few who might choose to avoid it, they would be informed about the time and place to get away without one, or whether they are in a location requiring it. Furthermore, depending on the house they are going for, their needs would change.

If you are looking for assistance or an expert's opinion when dealing with mortgages, you should connect with us at SHIRL FUNK. We offer all kinds of mortgages and finance options depending on the needs of our clients. We have been in the field for some time now and have a decent understanding of the way it functions. After working in this industry for more than a decade, we learned to leverage relationships and assist our clients with the best deals possible. If you are looking for a better understanding of our services, please click here. If you want to connect with us or think that we can assist with your needs, please click here