Mortgage Blog

Buying a Home is a Team Effort

January 11, 2020 | Posted by: Brandi Pierik and Matthew Pierik - Red Deer and Calgary Mortgage Brokers

It’s no secret that buying a home in Red Deer is an enormous undertaking. The entire process entails a substantial financial commitment, plenty of legal documentation, complex negotiations and, at times, stress. To ensure your homebuying journey runs as smoothly as possible, you’ll want to build a solid team of experienced professionals who will provide you with expert advice and guidance along the way.

The amount of involvement and interaction with each member of your homebuying team will vary, but they’ll all play an integral role in successfully steering you through the process. Here are some of the key players:

Financial Planner
Working with a financial planner is one of the first steps you should take if you’re thinking of buying a home. This will likely be the largest purchase you’ll make in your lifetime, so the need to define your goals and create a sound financial plan are critical. Your financial planner will help you create a budget to pay down any outstanding debt, put money aside for your down payment and associated homebuying costs, and assist you with establishing a good credit rating, which is essential when applying for a mortgage. Your financial planner will also help you determine how much you can comfortably afford by assessing your debt-to-income ratio to set a realistic price range for your home purchase.

Realtor
While much of your preliminary Red Deer house hunting will be conducted online, you’ll ultimately want to rely on the knowledge of a local housing expert to close the deal. A qualified real estate agent will help you locate your desired property, provide you with comparable data to determine current market values, coordinate house showings with sellers, effectively negotiate the terms and price you’re comfortable with, and coordinate the final purchase transaction.

Mortgage Broker
A Red Deer mortgage broker works on your behalf to find the most suitable mortgage based on your unique needs. Mortgage brokers are a popular choice for all buyers, but particularly for first-time homebuyers and non-traditional buyers, such as self-employed or low-income individuals. One of the primary benefits of working with a broker is their access to multiple lenders, including banks, trust companies and credit unions, which empowers them to compare mortgage rates and products to ensure you receive the best option. Your broker will also explain, in plain terms, all the important features of your mortgage to help save you as much money as possible throughout your time as a mortgage holder.

Accountant
Perhaps the least obvious member of your team is your accountant. Buying a home is a complicated matter and your accountant will ensure you’re making smart financial decisions by helping you understand how your new home may impact your overall financial picture and assist with all tax-related issues. There are a number of government programs offered to homebuyers, particularly for first-timers, such as the First-Time Homebuyers’ Tax Credit and RRSP Home Buyers’ Plan, as well as Land Transfer Tax Refunds, which involve tax benefits that will impact your income tax return. An accountant is also a key player in helping homebuyers with unique financial and tax situations such as those who are self-employed or who have irregular income.

Lawyer
Your real estate lawyer will assist you with the complex legal matters associated with homebuying. This includes reviewing and preparing the significant amount of closing documentation, conducting a title search to ensure there are no claims against the property, verifying that property taxes are paid to date, calculating the land transfer taxes due at the time of closing, registering and transferring the deed, and arranging for the transfer of funds. Your lawyer is also the person who will hand over the keys to your new home!

Surrounding yourself with the right professionals and trusting in their knowledge and expertise will help you successfully navigate the complexities of buying a home, and provide you with peace of mind throughout the entire homebuying journey.

Have questions about finding the right professionals for your team? Answers are just a call or email away! Brandi Pierik, Red Deer Mortgage Broker, Dominion Lending Centres.

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