4 tips on how to buy a property without a broker

Buying a home without a broker means having to tackle every aspect of finding the perfect property to fulfill your needs and that you can afford. If you're confident in your abilities, here are some tips to consider.

When you work with a broker, his or her job is to research the most suitable property for your budget and needs.

• Therefore, if you have chosen not to work with a broker, this task falls on your shoulders. Look for online listings or printed classifieds and keep your eyes open for "For Sale" signs.

When you find a suitable property, go ahead and set up a meeting with the homeowner.

• Don't be afraid to ask questions about the house and make sure it doesn't have any obvious structural, plumbing or wiring problems.
• A qualified home inspector will help you ascertain the condition of the property.
• Also, ensure that the asking price is fair when compared to similar homes in the same neighbourhood. Many homeowners tend to set a price above the market value.

If you decide to buy a property, the next step is to secure a mortgage pre-approval.

• The pre-approval will state exactly how much you are entitled to receive from the lender and clarifies your budget.
• After they examine your credit score, the lender will decide whether you are fit for a loan or not.
• Those with a higher credit score can borrow a higher amount of money at a lower interest rate. If you have a lower credit score, spend at least six months improving it; pay off your credit card balances and your loans, refrain from opening other cards and close those that you do not use.
• The pre-approval will strengthen your position and will demonstrate to the seller that you are serious about the purchase.

While banks are the most popular source of funding, there are other providers to look into such as mortgage brokers or online vendors.

• Don't choose the first that comes into your path. Instead, search the best lender that suits your personal needs and your loan type.

Next, hire a real estate attorney and make an offer on the house. An attorney is needed to draft all the legal documents, which afterwards you can present to the sellers.

• Negotiate the price of the property until you and the sellers come to an agreement.
• Your attorney will then draw up a sales contract for you and the seller to sign.
• Take the sales contract to the mortgage lender to process your mortgage.

To make sure the process of hunting for your new home is a pleasant one, be patient, carefully review your finances. Then decide on the most appropriate type of loan for you.

Keeping these tips in mind, you'll be able to afford the house of your dreams without breaking the bank.