Home Sellers and Buyers – How Our Vancouver Mortgage Brokers Can Help
Although most home sellers and buyers focus on the more apparent costs of the process such as interest rates and up-front pricing, there are many other important fees that come along with purchasing and selling a home that you don’t want to overlook. Our Vancouver mortgage brokers understand the ins and outs of real estate costs and how to manage them effectively.
Costs Involved in Buying a Home
Insurance is required when you are borrowing money to purchase a home, meaning you will likely need to purchase a policy before closing the deal.
Mortgage Loan Insurance
For those only providing a small down payment on their home, you will be required to purchase mortgage loan insurance. You can pay this premium upfront or you have the option of rolling it into your mortgage.
Investing in an appraisal is necessary so that your home’s fair market value can be established – this value is needed so that the lender can verify what you paid for the property is fair and it establishes whether your mortgage requires mortgage loan insurance.
Some other costs involved in buying a home include title insurance, legal fees, title searches and more.
Costs Involved in Selling a Home
Renovations and Modifications
When selling your home, you can expect to invest money in painting, renovations, landscaping and any other procedures that are necessary to bolster your home’s value and make it more appealing once it hits the market.
In addition to the renovations conducted to help you sell your home, there are more fees to come once you close the deal. These include real estate agent commissions, legal fees, , and moving costs. While not a closing cost, if you are selling an investment property you will have potential capital gains tax to factor in on when calculation your net profit.
Accessing Your Equity
Home equity is calculated as the difference between the appraised value of your home and your current mortgage value. This value will be used to determine the approval of equity that can be made accessible to you .Our mortgage brokers can help you through the process to ensure that it goes through with no problems.
Bridge financing is a great real estate tool that is used by borrowers when the closing date of their purchased home is prior to that of the home that they are selling. In this situation, you may not have the funds needed for the down payment due to them being stuck in the equity of your current home. However, bridge financing can be used to cover the gap in between the two dates to ensure that you can make your down payment.
For input and assistance from experts that know the ins and outs of buying and selling in the real estate market, our Vancouver mortgage brokers will provide you with the strategies that you need. For more information or further questions, contact us at the numbers listed above.