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Questions I often hear are: Should I use my Bank or a Mortgage Broker? And, if I use a Broker who pays?

These are great questions!

Personally speaking, while I have a relationship with my Bank, I would always shop around to look for a great interest rate! It just makes sense. To paraphrase the singer, Donna Summers, “[I] work hard for the money” and I know you work hard too.

 

So who pays the Broker? The great news is buyers who are shopping for a “standard residential mortgage, pay no fees to the Broker” (DL Newsletter, May 2019). The bank who lends the money, actually pays the Broker. The upside to using a Mortgage Broker is “[he] has access to every lender on the market and can sell you almost everything” (DL Newsletter, May 2019). The Broker can shop around to find that perfect interest rate possible!

 

Remember, Mortgage Brokers are licensed. Provincial governing bodies oversee them. The Broker’s goal  is to watch out for you, the consumer, best interests.

So the bottom line…Should you use a Mortgage Broker? Absolutely!

Just give me a call, or drop me a text to 604 308 1455 and I’ll send along some excellent Mortgage Broker names to you. I am here to help.

Reference
Email-Newsletter (May 2019), Dominion Lending.

Avoid the 3 Critical Mistakes Buyer’s Make!

Not being prequalified!

Buyers must realize that prequalification for a mortgage is paramount.  An unqualified Buyer can waste the time of their Realtor, the seller and of course, themselves. It may send a message that the Buyer is not serious in the purchasing process! A Buyer who gets their ducks in a row early in the pre-approval process by submitting required documents and filling out a mortgage application is vital. To get the wheels in motion, the Buyer needs to contact a reliable Mortgage Broker.

 

Not putting their best foot forward in an offer!

It’s human nature to want to offer a lower than asking price. Certainly, this is a prudent strategy in a Buyer’s Market. However, in a Seller’s Market when a buyer doesn’t step up with a strong enough offer, it can often backfire on the Buyer. Coming in with a strong opening offer is always attractive to a Seller. However, there are times to negotiate but there are times not to! 

 

Not using a licensed Home Inspector!

The Buyer has found the perfect property! Not using a licensed Home Inspector may be a tempting dilemma for some Buyers!  The Brits caution us: Don’t be penny wise, and pound foolish!  Simple translation; a Buyer should not make decisions that land up costing them a fortune! It is always the best decision for a Buyer to hire a professional Home Inspector. After all, the Buyer is purchasing the most significant investment in his/her life.  So avoid making a grave mistake!

There is a lesson to be learned from one Buyer who decided to do his own Home Inspection. He simply forgot one thing; to check the Air Conditioning unit! This Buyer thought he was saving $450, but the reality was he had to SPEND $1,500 in the long-term!

So bottom line, early on get pre-approved for a mortgage, put your best foot forward when making your offer, especially in a Seller’s Market and always get the property inspected by a licensed Inspector.

SO WHAT IS REALLY HAPPENING IN THIS 2019 REAL ESTATE MARKET?

After the ‘crazy last two years,’ Sellers now find themselves in a slower, but stable market which is still attracting Buyers. This stable slower market has had a positive impact on affordability.

The Real Estate Board (Fraser Valley) stated, “Prices of typical residential homes in the Fraser Valley have decreased between 5 and 6 percent in the last year. However, in the last three months, benchmark prices have either plateaued or have experienced a small recovery [in some areas].”

It is said that a picture is worth a thousand words. This SnapStats April 2019 Market Speedo Report is the essence of this.

If you would like a more comprehensive report please contact me via text message to: 604 308 1455.

Avoid the 3 Critical Mistakes Sellers Make!

So you want to sell your home? It is vital that you take the advice of your Trusted Advisor – your Realtor. After all, they do this day in and day out.

There are three critical mistakes that sellers make. Here’s how to avoid them:

Over-pricing Your Property

Often Sellers will want to try an above market-value price right off the top, just because they think they can. This is not a great strategy! Selling your home is not like a garage sale, where a buyer haggles over price. Indeed, leaving room for tough negotiations is the better way to go. The first two weeks of your property being on the market is the most valuable marketing time. So, capitalize on that.

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