Friday’s Financial Tips
Top Ten Financial Related Tips to Home Ownership
Buying a home can be tricky. There are many different options for Mortgages as far as Home Ownership is concerned. What can we afford? What are we willing to pay? Those are the two most common questions. However there are many different factors which can play on a successful home purchase.
- Buy a home that can fit your life style for a few years
When purchasing a home and reviewing options look at a home which could accommodate lifestyle changes over the next few years. Purchasing a home that you may need to sell within a year might not work out financially for you. At the end of the day a home is still an investment and you want to make sure you are able to profit in some respect off of your purchase and you are in an area which will dictate future growth.
2. Clean Up Your Credit
Most people are in a situation where they will need to obtain a Mortgage for their home purchase. In order to obtain a strong Mortgage with the best rate possible it is best to look into your credit and what is currently owed. Try to clean up your credit! Make regular payments- avoid under paying and clean up any possible errors.
3. Get Pre-Approved
Speak with a Mortgage Broker before you start your search. Have them pre-approve you for an amount and go over the payments with you. Having a pre-approval set in place will help determine which financial value you are looking in and more importantly exactly what you can look for.
4. Aim for a Home you can afford!
Once your Pre-Approval is set in place have the Mortgage Broker break down the payments- although everything may look good on paper make sure that you are comfortable with the numbers. If you are not then go lower. If you can afford more go higher!
5. Put down what you can afford
There are many different factors that come into play when looking at a down payment. Anything less than 20% requires CMHC insurance (Canada Mortgage Housing Corporation) which some people view as a deterrent. However the CMHC insurance is rolled into your Mortgage Payments over your term. It is not a flat fee paid out upon purchase. At the end of the day it takes people a lot longer to save that additional percentage and it can work out more favourably time wise to have a lower percentage down to be able to become a home owner faster!
5. Get Professional Help
Having the right people in line working for you – Real Estate Sales Representative, Mortgage Broker, Lawyer etc will help make the process smooth and effortless! After all time is money! Having the right team of people working with your best interest can make the process faster and more effective!
6. Have your Realtor look into area sales
Right now in today’s market (Seller’s Market) Homes are selling higher and faster! Before you get into a bidding war make sure you know exactly what the cap is on that particular home! Having the facts in front of you will make you more comfortable if the situation arises where you are entering competition for your home!
7. Choose your Mortgage Carefully
Once a deal has been set in place speak with your Mortgage Broker about the different rate options. Look at the best possible rate for you. Are you best to go with a 3 year fixed or 5 year? Talk to them about the potential Mortgage Discharge Fee’s and how you could be affected at the end of the day.
8. Have a “Cushion” Set aside for Adjustments and Lawyer Fee’s
At the end of your home purchase the lawyer will review with you the different adjustments and fee’s associated with the purchase. Often there are “adjustments” set in to place depending what the previous owner has paid- ie taxes, hydro etc…. These adjustments can be debited or credited towards your final closing costs. We tell all of our clients to have up to 3% of the Home Purchase price set aside for these costs. After all nobody likes surprises!
9. If you have the option to have a Home Inspection- Have a Home Inspection!
Although a Home Inspection can run you $400 – 600.00 they give you invaluable insight onto your home. Home inspections especially in Freehold sales outline to you different problematic areas of your home. The Home Inspector will go over with you potential defects in the house and the cost associated with repairing them. A Home Inspection will let you know what needs to immediately be finished and what needs to be set aside for the future. Home Inspections are also good for learning about the home and their mechanics!
10. Other Forgotten Fee’s of Home Ownership
When you buy a house that isn’t the end of the process. You need to have Insurance on your home, Utilities transferred into your name (which there can be a set-up fee associated), lawyer costs, and different types of home inspection. These costs can vary depending on the type of home you are purchasing (Condo, Freehold, Rural Property) A good Realtor will outline to you the potential costs early on so all areas are covered!
Although Home Ownership and Purchasing a Home is exciting it can also be very stressful! Having a knowledgeable professional working for you with the proper tools and outlets at their access will make the purchase effortless and smooth! Our team works with various professionals which suit our clients purchase. We make these people available to you at your access for an easy and effective purchase.
Thinking of Buying or Selling? Contact our team today for your Buyers Review or Comparative Market Analysis for your Home Sale.
Make Your Approach The Fresh Approach
The Fresh Approach Real Estate Team with Keller Williams Realty Solutions,
Allana Thompson, Christy D’Oliveira, Kyrsten Feere
Allana- firstname.lastname@example.org 416-567-2018
Christy- email@example.com 647-261-8910
Kyrsten- firstname.lastname@example.org 905-577-2608