REAL ESTATE FINANCING- MORTGAGES- 7 SECRETS OF THE TRADE
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The real estate business brings benefit to both the estate agent and the investor. It is a sound investment and people from all around the world deal with residential and commercial property to get rich or to establish their own living. Many people when given the choice of selecting between setting up a business in Dubai or becoming a real estate investor or broker, they chose the latter option. This showcases the high earning potential in the real estate business. The real estate financing is a tricky business. It treasures success secrets for both the agent and the buyer.
We have gathered the 7 secrets of the trade to help the investors stay safe from the agent’s dirty tricks and make a profit in the deals that they have made.
Secrets of real estate trade you must know:
The inside politics of every journey is complex but why should you suffer from it? Here are the top secrets that can help you enjoy the best real estate financing experience.
- Keep a check on the loan inquiries you are making:
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You aren’t shopping for credit while making loan inquiries and you should remember that. Applying for a loan is tricky and you should make sure the lender finds the application persuasive and practical. There are different types of loans. Some lenders give loan for renovation of the house while others also support the full construction process of the place. But in either case, you need to be specific and clear about your needs. There is the standard mortgage loan and there are funds that you get for bigger plans. Make sure what you want to do and apply accordingly.
- Adjustable-rate mortgage:
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Even if you have few bad credit remarks on your report, you can do well in real estate financing. The situation for every buyer is different and so are his options. The adjustable rate mortgage takes care of that. You can get the details about it from your lender and you’ll be good to go. Moreover, this type of mortgage is beneficial for homeowners who do not plan on staying in their house for a long, long time.
- Do hire a lawyer to review your contract:
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Whenever you finalize the deal with your property broker, make sure you have it reviewed by your official property lawyer. There is no such thing as verbal agreement and trusting other in the real estate business. Everything is a contract officially signed on a piece of paper that is considered essential in the eye of court. There are quite many real estate agents who do not mention hiring a lawyer for this purpose but you need to play smart here. Hire a lawyer beforehand and keep him up to date on your proceedings with the real estate agent.
- The truth about agent’s commission:
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The buyers are often tricked by the real estate agents into giving commission but in reality, it is the seller who gives commission to the agent/ broker from the deal that is finalized. The buyer need not worry about it; neither should he fall in the trap if the agent claims a commission. The commission of the agent is never fixed and it isn’t split in half between the buyer and seller as well.
- Best deals shown by the estate agents are the last ones:
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While buying property, we would advise that you stick till the end to get the best deals. Most of the real estate agents refrain from showing the finest house, property land and buildings so that they can first sell the low-valued property. Keep this in mind and when you go out for a tour of the property, make sure you see every option your agent has got to offer.
- Figure out your bottom-line affordability limit:
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Buying a property is a huge investment. If you are about to invest it, make sure you are ready for it. First of all, you need to decide the budget which you are willing to spend on the property. Next, you need to make sure that your car payments, credit card payment and the other loan payments aren’t hindered by the process.
- Gather sufficient information before running into anything:
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Last but not the least, gather as much information about property dealing as possible. Ask you relatives and friends who have dealt with property dealers about the process. Look into the methodology yourself and ask about loans and funding. Also, make sure you hire a potential real estate agent and a lawyer as well. You are about to make a big investment, you wouldn’t want it to go wrong, right?
These are the real estate secrets that you must know. It is always beneficial to get some education regarding the process to avoid any tricky business coming your way, and this is why we have brought this article to light for you.
Author Bio: Brenda Cagara
While Brenda Cagara got experience in Dubai business setup with the top business consultants, she managed to flourish her writing career as well. In the past five years, she has emerged as a brilliant writer and writes on nearly every niche. The reflection of her success in this field is often witnessed in her writing pieces written on real estate, taxation and finance. You can follow her on twitter @brendacagara198.