The Professionals To Hire When Buying A Home

General 31 Jan

Assembling a knowledgeable and cohesive home-buying team will help ensure you have a smooth and stress-free experience. Here are the individuals that are integral to the process:

Mortgage Professional

A mortgage professional will help arrange the financing for your home. He or she will help you understand your home-buying budget, research the market, and help you navigate the different mortgage options available to you, ensuring you have the features and rate that meets your needs.

Realtor

Between navigating the real estate market, negotiating on behalf of your best interests, and ensuring you find the right house; hiring the right Realtor is an important step in your home ownership process.

Home Inspector

A home inspector will ensure you know what defects, if any, there may be in a home you’ve written an offer on. This is part of your due diligence process and hugely integral in ensuring you are fully informed about what you’re potentially investing in.

Lawyer

Finally, the last step! Your lawyer will convey your purchase documents, transfer title and ensure you are protected in the transaction.

Contact me today if you have any questions or if you would like more information.

Some Important Things to Consider Before Your Mortgage Renewal

General 15 Jan

Your upcoming mortgage renewal provides you a great opportunity to recalibrate and plan for the future. Here’s a list of a few important things you should consider before that day approaches:

Can you handle fluctuating rates?

Some homeowners are nervous about any increase to interest rates, while others are comfortable to go with the flow. Rates are hard to predict. It’s best to base your decision on your personal situation, not what you read in the news, and tailor your mortgage renewal around your needs. I can help you decide whether to opt for fixed or variable rates on your renewal.

Are you getting the best rates and terms?

In a competitive mortgage environment, your good credit history can make refinancing work to your advantage. We analyze mortgage markets daily to ensure you don’t miss any money-saving opportunities.

Are you planning to sell soon?

If you are likely to sell your current home soon, you might consider a shorter-term mortgage or one that has more flexible terms so you can avoid being penalized if you sell your house before the new mortgage comes due.

Have you explored all your mortgage renewal options?

Once you receive your mortgage renewal statement, there’s nothing easier than simply signing on the dotted line for another term. While this may make sense in many cases, your family or financial situation may have changed since you first got your mortgage. Renewal time is the perfect time to look for opportunities that could better meet your current needs.

Are you comfortable with your payments?

If you’ve been feeling financially strapped each month making your mortgage payments, this could be the time to reduce them to a more easily managed level. On the other hand, if you’re earning more, why not pay down your mortgage faster and save thousands of dollars in interest over time? Renewal time is the perfect time to review your mortgage amortization.

Do you need cash flow for other things?

Your priorities may have shifted since you first bought your home, and your cash flow needs can shift too. Things like paying for a child’s university education, planning a career change, or a major purchase such as a vacation property may call for spending money on things other than your home. You may be able to refinance your mortgage to take this into account.

Are you thinking about a major renovation?

Home improvement projects such as a new kitchen or an addition can make your home more valuable, but the cost of having the work done can tie up a lot of money. Before you renew, look at all your financing options, which may include getting an additional line of credit or keeping your monthly mortgage payments low so you have money on hand to finance the renovation.

When do you want to be “mortgage-free”?

If you’re planning extended time away from work or perhaps an early retirement, it may make sense to pay down your mortgage sooner rather than later. While increasing your payments will raise your monthly costs now, you’ll ultimately save on interest in the long-term and can prepare for being mortgage-free sooner.

Could you use your home equity to fulfill other goals?

Refinancing a mortgage can be one way to free up the cash you need for other things, which could even include buying another property. Mortgage renewal time is an ideal occasion to review all your options.

Questions about renewing your mortgage?

Contact me for more information. I’d be happy to discuss with you your options and provide you with a free, no-obligation consultation.

Source: http://www.scottdawson.ca/9-things-to-consider-before-your-mortgage-renewal/

The 3 Crucial Things you Need to Get a Mortgage

General 2 Jan

There are a few components required for you to successfully qualify for a mortgage. Here are the three crucial things you need to get yourself approved to buy that home:

  1. Income

There are many different ways people earn income nowadays (salary, commissions, bonus, tips, etc.). Lenders would like to see that you receive a consistent source of income. This will have a large impact on what you can qualify for, as the more income you make (and can prove), the more of a mortgage you can generally qualify for.

If you are self-employed, click here to see how your income can be assessed differently.

  1. Credit

Your credit report informs lenders how you have managed credit in the past, and your credit report will generate a score based on that history. Lenders are looking for a score ranging between 600-900. 600 is considered low, 680 is excellent, and anything above 700 is exceptional. Your credit score is important as it will determine what interest rates you have access to. Generally speaking, if you have established credit (at least two different types for the past two years), pay your bills on time, and don’t max out your credit limits, your score should be great!

To learn strategies on how you can increase your credit score click here. To find out how you can get a free copy of your own credit report, click here.

  1. Down Payment

Having the appropriate amount of money for a down payment shows your lender that you can afford to pay for a house and that you are financially responsible. You are required to put a minimum of 5% down of the purchase price of your home. If you have at least 20% available for a down payment, you are rewarded by not being required to purchase mortgage default insurance. Lenders will accept a down payment from the following sources: your own savings, RRSP’s, gifts from family, or from borrowed funds.

To get a better understanding on the documentation required depending on the type of down payment you plan on using, click here.

If you believe you are ready to purchase a home now, getting ready to purchase one in the near future, or just want to find out where you currently stand, click here to fill out an application. I will be happy to put together a customized plan on how you can get a mortgage that best suits your individual needs.