How to choose the right professional for your home purchase
Real estate agents are not the only professionals that are involved in the home buying process. Find out who else you might want on your team.
Buying a home can be a complex and daunting process, which is why it’s important for buyers to have the right team at their side. Mortgage brokers, real estate agents, lawyers, and other professionals work to protect buyers’ interests in a variety of ways. Here, potential home buyers can learn how to choose the right team for their purchase.
Real Estate Agents and What They Do For Buyers
Real Estate Agents can help prepare purchase offers and present them to current homeowners. In most instances these services come at no cost to the purchaser. The agent is typically paid part of the listing agent’s commission where the cost is transferred to the seller. Unlike sellers, buyers typically do not sign written contracts with real estate agents. When choosing a real estate agent, clients should consider factors such as:
- The length of time the agent has been in business
- His or her average workload
- The ratio of buyers to sellers
- The areas and neighbourhoods they cover
- Whether they work alone or as part of a team
- Their communication style and preferences
- References from past clients
If someone is purchasing a home, an agent can help them find the right kind of home at the right price.
How Mortgage Brokers Help Buyers
In the past, potential home buyers relied on banks to get mortgages, but they now have other options, thanks to mortgage brokers. An independent mortgage broker is a licensed specialist who has access to multiple rates from various lenders. They can negotiate low rates, and because they work with a high product volume, brokers can pass those discounts directly to clients. Mortgage holders typically get more than one quote before choosing a product, which reflects an inclination to shop around. A mortgage broker essentially takes on this role so the buyer doesn’t have to do so. Full-time mortgage brokers specialize exclusively in this area, which means that they can often provide a higher level of service than a part-time broker can offer.
Hiring a Real Estate Lawyer is a Wise Decision
While agents and brokers have some real estate legal knowledge, it’s often limited. A real estate lawyer can oversee the home purchase agreement and other documents to ensure that the buyer’s legal rights are protected. By choosing the right team of real estate professionals, buyers can prevent legal and procedural issues before they arise. Once a buyer has partnered with an experienced real estate and mortgage team, they can move forward with a purchase knowing that they’ve gotten the best possible protection, guidance, and advice.
Other Professionals Complete the Team
While a real estate agent and a mortgage broker both play a crucial role in the home purchase process, there are other important roles to consider as well. Inspectors evaluate potential homes and make recommendations on pre-sale improvements, while insurance agents can help buyers find the right policy for their needs, their mortgage, and their budget. During the title and escrow processes, it’s important to get a firm idea of the home’s value. A professional appraiser uses the local housing market and various other factors to evaluate the property’s value. Home buyers should ensure that the appraiser is licensed and certified, as this demonstrates their objectivity. Finally, an escrow officer can serve as a neutral third party who coordinates the signing of loan documents and holds funds during the sale. The escrow officer ensures that all involved have fulfilled their obligations before the funds are released.
Why It’s Better to Work With a Broker Than a Bank
There are numerous factors to consider when deciding between a mortgage broker and a bank. Although banks may offer discounts for consolidated services, there are many reasons to go with a mortgage broker instead. Unlike banks, brokers have access to the entire Canadian mortgage market. With this knowledge, a broker can recommend only the lenders who are most likely to work with a buyer based on his or her individual circumstances. A mortgage broker can often access unadvertised deals, negotiate more favorable interest rates, and get application fees lowered. This is especially beneficial for those with poor credit, as a broker may be able to leverage their relationships with lenders to get these buyers more favorable mortgage terms.
Mortgage brokers play a crucial part in the home purchase process, and they provide many benefits to Canadian home buyers. However, they’re just part of the home sales team, and there are other important roles for buyers to consider. By finding the right broker, lawyer, insurance agent, and home inspector, a buyer can get the help they need to make any home purchase smooth and successful.
If you need help choosing the right professional to assist you with the home buying process, we work with a team of experienced buy-side professionals that we can recommend. Contact us today for a free no-obligation consultation.