Posted 4.25.12 @ 8:19 by: Staff

If you’re buying or selling Oakville real estate you will most likely run into escrow. Escrow is the process where you transfer one piece of property from one person to another, fairly and equitably. There are many problems that can arise when a property enters escrow, and you’ll need to understand the process before you enter into it. Here we’re going to talk about good faith estimates, if prepaid escrows are right for you and how to get the expert support of the Goodale Miller team to make your escrow as smooth as possible.

Be Prepared

When you reach the negotiation table you can be in for some nasty surprises; the bank could hold your property hostage until you pay x amount of money to close the deal. If you don’t want to be surprised you need to be prepared. We can help you understand all of the fees that you’ll owe at closing, and how to be honest so you’ll be able to get a solid deal on luxury real estate. Talk with your mortgage broker or lender about exactly what will be due at signing, don’t be surprised when the deal comes to a close.

Get an Estimate

Your loan officer or mortgage broker will give you a good faith estimate once you’re approved; this will cover how much money you’ll have available for your Oakville real estate purchase, how much you’ll need to pay each month, and other costs that will be incurred with getting your mortgage. But what you have to remember here is that it’s an estimate, not an actual figure. Your monthly payment may be more, it may be less. The money that you have to pay at closing will be the same. You need to speak with your lender and ask them how much the agreement could change by the time it comes to a close. Before you make an offer on Oakville real estate you should ask your lender again for another good faith estimate to see how the deal will change.

Know What Affects Prices

One of the largest factors that can control prices that you have control over is what date you close your sale. Different days bring different fees and prices (in the thousands of dollars!) so speak with your lender and the member of our team that’s working with you on your sale so you can get the best day to close your sale.

Escrow is a fact of life when buying or selling real estate, and if you want to avoid any surprises you need to be prepared. Getting a good faith estimate when you start looking for a house and then when you’ve found one will help you know how much you can spend and how much you need to save. When you work with us we’ll help you find the right day to close so you don’t end up paying thousands of extra dollars because you picked a Tuesday and not a Thursday.

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