Archive for the ‘buying your home’ Category
WHY YOU SHOULD GET PRE-APPROVED BEFORE HOUSE HUNTING
Monday, August 10th, 2015Buying a house is a very exciting time for anyone and most potential homebuyers want to jump right in and start looking at houses. However, getting pre-approved for a mortgage is one of the most crucial points in beginning your home search. It is natural to want to start looking at houses immediately, but getting pre-approved first will make the process much more streamlined for everyone involved. Here are 5 reasons why you should get pre-approved before house hunting.
Saves time for everyone.
It doesn’t make sense to look at houses when you don’t know what your price range is or whether you’ll even be approved. Looking at homes takes time and while it may be fun for you, it is also work for your real estate professional. Having a pre-approval before house hunting will allow you to look at homes that you can afford and save everyone’s precious time.
You know what your budget is.
As a homebuyer you want to begin looking at homes you can afford. There is nothing worse than falling in love with a home that is outside your price range. Getting a pre-approval before house hunting will give you a realistic expectation as to what you can afford. With that number you can decide on what compromises you are willing to make to stay within that price range. This will help you to manage your expectations and emotions during your house hunt.
You will be taken more seriously.
Having a pre-approval in hand will make you look much more on top of things during the home buying process. Many realtors won’t begin showing homes until they see your pre-approval letter and know what price range of homes they should be showing you. Additionally, when it comes time to make an offer on a house, you will be taken more seriously in the eyes of a seller if you have a pre-approval letter to present. In fact, your offer may be more attractive to others because the sellers will know that you’ve already secured a mortgage loan.
It is much less risky.
If you enter into a sales contract without a pre-approval you are creating many risks for yourself. First, getting a mortgage pre-approval may take time and it may push back your closing if you don’t already have one. Secondly, if you fail to get a pre-approval after entering into a sales contract you may end up losing the earnest money deposit that you made with your contract. Neither are risks you want to take when buying a home.
Helps expedite the closing process.
Having a pre-approval before entering into a sales contract will make the process much more streamlined. You will already have a point of contact with your lender and will most likely have a list of documentation that you’ll need to provide. You won’t have to go through the entire underwriting process and it will help you to close on your mortgage in time.
Remember these 5 reasons of why you should get pre-approved before house hunting. It saves everyone time and will help you to avoid any heartache and headache in the real estate market.
Browse my website to search for your dream home here
See what you can afford!
Friday, April 10th, 2015о чем надо подумать при покупке дома?
Tuesday, November 18th, 2014
о чем надо подумать при покупке дома
CMHC to Increase Mortgage Insurance Premiums
Wednesday, March 5th, 2014
OTTAWA, February 28, 2014 — Following the annual review of its insurance products and capital requirements, CMHC will increase its mortgage loan insurance premiums for homeowner and 1 – 4 unit rental properties effective May 1, 2014.
The increase applies to mortgage loan insurance premiums for owner occupied, self-employed and 1-to-4 unit rental properties, including low-ratio refinance premiums. This does not apply to mortgages currently insured by CMHC.
For the average Canadian homebuyer requiring CMHC insured financing, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact on the housing market.
Effective May 1st, CMHC Purchase (owner occupied 1 – 4 unit) mortgage insurance premiums will increase by approximately 15%, on average, for all loan-to-value ranges.
| Loan-to-Value Ratio | Standard Premium (Current) | Standard Premium (Effective May 1st, 2014) |
|---|---|---|
| Up to and including 65% | 0.50% | 0.60% |
| Up to and including 75% | 0.65% | 0.75% |
| Up to and including 80% | 1.00% | 1.25% |
| Up to and including 85% | 1.75% | 1.80% |
| Up to and including 90% | 2.00% | 2.40% |
| Up to and including 95% | 2.75% | 3.15% |
| 90.01% to 95% – Non-Traditional Down Payment | 2.90% | 3.35% |
CMHC reviews its premiums on an annual basis and, going forward, plans to announce decisions on premiums in the first quarter of each year.
| Loan Amount | $150,000 | $250,000 | $350,000 | $450,000 |
| Current Premium | $4,125 | $6,875 | $9,625 | $12,375 |
| New Premium | $4,725 | $7,875 | $11,025 | $14,175 |
| Additional Premium | $600 | $1,000 | $1,400 | $1,800 |
| Increase to Monthly Mortgage Payment | $3.00 | $4.98 | $6.99 | $8.98 |
Based on a 5 year term @ 3.49% and a 25 year amortization
| Loan Amount | $150,000 | $250,000 | $350,000 | $450,000 |
| Current Premium | $2,625 | $4,375 | $6,125 | $7,875 |
| New Premium | $2,700 | $4,500 | $6,300 | $8,100 |
| Additional Premium | $75 | $125 | $175 | $225 |
| Increase to Monthly Mortgage Payment | $0.37 | $0.62 | $0.87 | $1.12 |
Based on a 5 year term @ 3.49% and a 25 year amortization
Mortgage Brokers Better Than The Banks
Tuesday, May 21st, 2013Mortgage brokers have been part of the Canadian mortgage landscape for almost as long as mortgages have been around. In fact, last year more than 25% of Canadians used mortgage brokers for their financing needs.
Last week a national newspaper stated “mortgage brokers are a significant factor driving discounts – reducing the cost of a mortgage by 17.5 basis points”. That’s thousands of dollars that are better in your pocket than your banks.
Brokers are a preferable alternative! They are in the ideal position to offer the best rates but also ensure that your mortgage has the right options and features that benefit you today and years down the road.
Many people haven’t experienced the value we bring to the most important financial decision most Canadians will make. Studies demonstrate that Canadians who use the services of a mortgage broker are extremely satisfied.
Here are two humorous videos that exemplify the value of dealing with a mortgage professional. Please take a minute to have a look and vote for your favorite. Click here to watch and vote:
http://www.mortgagealliance.com/videovote/index.html
Buy First or Sell First?
Thursday, May 9th, 2013The real issue is how much money you have and how much you’re prepared to spend in order to secure the house of your future.
If you are prepared to own two homes for an extended period of time, you could buy the new Canadian house and simply wait until you sell your primary residence.
But if you’re just waiting to find the right house so that you can retire, owning two homes could be a substantial setback to your plan. And if you can’t really afford to own the two houses at once, you might be better off making sure you have a buyer for your current home before trying to buy a home.
The problem is that you still might own these two homes for some time to come. To understand how much of a liability you face, you’ll have to do an indepth study of homes that have recently sold and those that are on the market.
You can do this by looking up the prices of homes that have closed. But if you are unsure of where the real estate market is in your area, just ask me to get my thoughts on the market and how to position your home for sale.
Since you may not have your home ready to sell for almost a year, the market today could be very different from the market next summer. If the real estate market in your area is better now, you might want to consider selling soon. If the real estate market in your area is poor now, it may or may not get better next summer.
Your decision to buy hinges on whether you can see into the future to determine where the real estate market might be. I do know that owning two homes and having the expenses for those two homes is a big burden to bear particularly when you are trying to retire and scale down your home and your way of life.
How to be the Most Attractive Homebuyer
Thursday, April 25th, 2013FOR BUYERS: HOMEBUYING – THE PROCESS I will be with you every step of the way during the home buying process, so I wanted to give you a good idea of what to expect. I came across this article that does a good job of explaining what the home search and purchase process entails. I have a wealth of information and resources so please let me know if you have any questions. I look forward to working with you.
Title Insurance
Wednesday, April 17th, 2013
This is the article written by author Stan Galbraith of Galbraith Law.
Within the last 10 years, a new insurance product has arrived in Alberta. It is commonly referred to as title insurance.
What is title insurance? This product was never available before so what has changed? What does title insurance provide that cannot more adequately be provided by a Real Property Report (RPR)?
Title insurance has been a popular product throughout the United States for many years. In fact, Chicago Title traces its history back before the famous Chicago fire caused by the cow. The three major title insurance companies providing insurance in Alberta all have a parent company in the USA. These companies first started Canadian operations in Ontario.
Both the USA and eastern Canada operate a different Land Titles registration and transfer system then we have here in Alberta. We are fortunate in Alberta to have a government-guaranteed Land Titles system commonly referred to as the TORRENS system. Throughout the rest of North America, when you get a Title, you can never be completely sure that it discloses everything. For example, there could be an unregistered mortgage or unregistered transfer that may impair your title. In Alberta, “what you see is what you get” and the government guarantees this.
Previously, title insurance primarily covered the issues covered by the Torrens system. Eventually, companies became innovative and expanded their coverage, so their insurance had applicability here in Alberta. Over the years they have continually added new items to their coverage. Now, their product offers substantial benefits at a very reasonable one-time cost. Some of the issues title insurance covers is as follows.
It covers the gap between submission and registration. A couple of years ago when registration was taking 5 weeks or more, you could never be sure when you submitted your documents as to other registrations in the stream that may affect your title. For example, I acted for one purchaser where the sellers ex-spouse filed a Matrimonial Property Judgment against the title one week before we submitted our Transfer of Land. When we submitted, the Judgment was not there. By the time we got registration, the Judgment was registered. Title insurance will step in to deal with this.
It will cover deficiencies that would not show on a Real Property Report such as unregistered utility easements or builders liens or matters that would be shown by non-Land Titles searches such as deficient corporate status. It will cover hidden deficiencies such as underground storage tanks or underground septic tanks. In one case, they paid out a claim to move a septic tank when it turned out the tank was buried partly under the neighbors land. Coverage is also provided for unknown special assessments on condominiums.
Title insurance covers issues that would have been shown on a Real Property Report if one had been obtained. Use of this product can avoid the need to obtain a Real Property Report. It also covers internal non-compliance issues that would never be shown on a Real Property Report such as lack of building permits or failure to meet building code on renovations such as a basement development.
Even where there are known defects, title insurance will often underwrite these issues. This could include a fence in the wrong location or a deck that is too big for the property.
Most of this coverage continues after the closing date. Perhaps the most important coverage that continues after the closing date and during the entire time the property is owned is against forgery, fraud, duress, incompetency, incapacity, or impersonation.
Title insurance is an insurance product. As such, it does not fix a problem. It provides insurance or indemnity coverage. In other words, the title insurer has no obligation to do anything until a problem actually arises. When this happens, they have the choice to pay damages rather than actually fix the problem. Problems can be deferred or masked instead of fixed.
Deferring or masking problems can come back to haunt all parties at a later date. For example, when a seller, who accepted title insurance when they bought, sells and the buyer does not accept title insurance they may be forced to solve the problem. Obtaining Encroachment Agreements, especially where fences or other structures encroach onto municipal land can be quite costly. Likewise, applying for and obtaining development and building permits can be time consuming and expensive. If a buyer insists on this solution, the seller may be forced to undertake an expensive remedy and may look to the realtor and lawyer who helped them originally purchase the property for some redress. Accordingly, it is doubly important to ensure a purchaser understands the extent and impact of title insurance coverage and the fact that it does not apply when they sell the property. By simply insisting that any new buyer obtain title insurance rather than relying on an RPR, they will continue to defer any issues.
Overall, in my view, title insurance is a valuable addition to the real estate marketplace in Alberta. The coverage for future fraud for the entire ownership of the property by payment of a one-time premium is enough justification to purchase title insurance on every real estate purchase. In some cases, title insurance is the only way to effectively close a real estate deal.
About the author: Stan Galbraith is a lawyer with over 25 years of experience. He was admitted to the Alberta Bar in 1983 and has operated his own law office since 1988. Stan has a wealth of experience ranging from litigation and appeal work, to teaching and writing. He has now left the world of litigation behind and works with commercial and residential Realtors and their clients on closing their transactions. He also practices extensively in the areas of small business and wills and estate planning and administration. You can find his website at www.galbraith.ab.ca.
Canada is Still the Best Place to Own a Home!
Tuesday, March 19th, 2013Canada is one of the best countries in the world for home ownership. We are now clearly the fastest growing nation in the G8 regarding immigration as recently reported in the Globe and Mail. Canada is setting its sights on an annual immigration of 400,000 people by 2016 up from the current 320,000.
The demand for home ownership across all provinces will be significant for decades. As Canadians we can feel confident that our home will continue to be a place where we raise our families, have our dreams come true and remain a cornerstone of our life long financial wellbeing, despite what the media would like us to believe.
The U.S. economy is showing signs of consistent growth with housing starts and new jobs leading the charge. This of course bodes well for us and is particularly welcome news for our manufacturing and resource sectors.
So the economy on both sides of the border looks promising, immigration will continue to add to the growth of Canada and interest rates are historically low. Regardless of what some might want us to think Canada is Still the Best Place to Own a Home!
If you know anyone who is looking to buy a home, it’s important that they get pre-approved today! The spring market is fast approaching and there is evidence everywhere of a pent up demand. Having that pre-approved mortgage in hand can give someone the advantage over other buyers.
Call or email me today!
