Showing posts with label buying tip. Show all posts
Showing posts with label buying tip. Show all posts

Saturday, November 24, 2007

Get Representation!



Get Representation!

I can’t stress the importance of this enough. This is likely the biggest and most important financial decision of your life do not take the risk of spending thousands of dollars more then you need to. If you are buying a home in the London area please contact me and I will be happy represent you.

Who Pays?

In virtually all cases the REALTOR is paid from the proceeds of sale and any fee paid is set by the Seller during the listing agreement. This fee is fixed at that time and is paid whether you get a Buyer’s Representative or not. You save nothing by not using a Buyer’s Representative.

Agency

It is very important to know whom a REALTOR is working for. If you do not have a signed Buyer’s Representative Agreement then you likely are a Customer to who ever you are talking to-which means they are likely actively working for someone else!

This is a very important financial decision please make sure you understand who is working for who. I will be very happy to explain and clarify any questions you have. If you are looking for a home in the London area please contact me and I will help.

What can I do as your REALTOR?

There are many things involved in buying a London area home. I can provide you with a step by step guide to buying a home. Here are a few other things that I do for you:

Financing- As your REALTOR I understand the different financing options available and I can help direct you to someone who has financing that is right for you.

Searching-As your REALTOR I will actively search for a home that means your needs and budget. I will show you properties that you are interested in.

Selecting-As your REALTOR I will help provide objective information about each home, and its area. I will help you evaluate whether it will truly meet your needs and how the homes features will affect its value in the future. Will you make money on it in the future? I can help you answer that and give you detailed information about the market.

Negotiating-As your REALTOR I will help with this complex and very important step. Drafting the legal documents can be very confusing and I will help explain what everything means. I will also help negotiate details like price, financing, terms, date of possession, inclusion or exclusion of fixtures, chattels, and repairs.

Closing-As your REALTOR I will help get you to this final stage, help handle problems along the way, and get you into the home.

After Closing-As your REALTOR I will not disappear and I will follow up with you regularly to make sure you are doing well and answer any questions or concerns that may have come up after the purchase. I will still be there to help you.


There are many other things I will do as your REALTOR as the process is very complex. My services are guaranteed in writing. Call me today and I will be happy to explain to you in more detail.

Marking Extra Mortgage Payments`



Making Extra Payments


Do yourself a favour and consider making an extra principal payment on your mortgage as often as you can.


Paying extra amounts on your mortgage can make a big interest saving over time. When we select a mortgage company, privilege payments options are something that we look for. A 20% privilege payment will allow you to pay off up to $20,000 per year on a $100 000 mortgage. It is important that the privilege payment also be flexible to allow you to pay smaller payments on the mortgage and as often as you wish. An extra $1000 periodically paid on a mortgage can help you become mortgage free faster.

Payment # Interest Principal

13 583.62 138.51

14 582.82 139.31

15 582.02 140.11

16 581.22 140.91

17 580.41 141.72

18 579.59 142.54

19 578.77 143.36

20 577.95 144.18

21 577.12 145.01

22 576.28 145.85

23 575.45 146.68

24 574.6 147.53

25 573.75 148.38

26 572.9 149.23 Total 8096.5 2013.32

This is an example payment schedule for a mortgage of $100, 000 at 7% interest amortized over 25 years. This one includes CMHC fees.


Many people don’t realize that when you make a lump sum payment, from a tax return as an example, your payment goes directly to the principal increasing the equity by a large amount. Looking at my table you may notice that you save an entire year’s interest by making a one time payment of only $2013.32. You gain that equity and save an additional $8096. 50 in interest. Now that is a great return on investment.


For more specific information applicable to your unique situation contact your mortgage professional. If you need help finding one in the London area for your home please contact me and I will help you.
Thanks to Bigfoto for the picture