Tips on Getting the Best Mortgages
By Nicole Rodgers
Shopping around for a mortgage is not as difficult as it may seem. Although there is a lot of paperwork involved, comparing offers and searching for a good deal is worth your effort. Before going for a mortgage loan you should understand how things work and then try to get lower interest rates. Here are some tips on getting the best mortgage:
Improve Your Credit Rating
Before you start shopping for a home loan or mortgage, check your credit record. Paying down your financial obligations and getting rid of debt is a good start. Individuals with a poor credit record have a difficult time finding competitive deals. It is highly recommended that you improve your credit score before applying for a mortgage. Credit scores over 620 are usually approved.
Shop Around and Compare Costs
Although you might be tempted to go to a local bank because you have a checking account there, it is advisable that you first research your options to make an informed decision. Contact a broker, use the Internet to get loan quotes and search for information in your local newspaper. Each bank, loan association or mortgage company has its own interest rates, so be sure to evaluate a number of offers from different providers.
Make a Large Initial Deposit
The size of your deposit is very important when it comes to getting a mortgage. The best rates out there are available only to those with a large deposit. The larger the deposit you have, the more money you will save. The good news is that there are a couple of things you can do in order to build up your deposit. Getting an unsecured loan is a viable option. You may also ask your family or friends for help, reduce daily expenses or use your other savings.
Decide on the Right Mortgage
If you decide to apply for a mortgage, be sure to do proper research. Potential homeowners can choose from various types of loans. Some of them prefer a 30-year mortgage, while others opt for fifteen-year fixed rate loans. Evaluate your budget and decide how much you can afford paying every month. Remember to ask each lender and broker about the loan’s annual percentage rate (APR). The APR includes broker fees and points, as well as the interest rate that applies to the loan.
Act Fast
Once you find an offer that suits your needs, act quickly to secure the mortgage. Although you need to do research and evaluate your options, it is important that you act quickly to avoid disappointment and get the best deal out there. You may hire a broker and ask for expert help. A good broker can move quickly to secure funds for you.
Applying for a mortgage loan requires your full attention. Be sure to get all the information you need from several lenders or brokers. Ask about the lender’s requirements for a down payment and try to find out what each fee includes. Make lenders compete with one another for you. Examine your credit report and make sure you don’t borrow more money than you need. Don’t hesitate to contact a broker; he can help find a loan that best suits your needs. Get loan quotes from multiple sources and check the reputation of the brokers and lenders you interested in working with.
Nicole Rodgers has been in the mortgage industry for 4 years; she currently contributes to blogs dealing with ways for people to refinance a home loan and how online trading can help families earn extra income.
Choose Your Home: Top Ten Things To Consider When Buying
By Greg Andruff
10. How long do you think you will live there (people move on average every 4-7 years)? Or, if you are an investor, when do you hope to cash out if ever? What is your exit strategy?
9. Location –- Is your purchase close to shopping, traffic, airport? What area/neighbourhood is the property in? Is it close to schools and parks or close to downtown?
8. Is the property restricted by certain rules? Be aware that in a strata or a heritage home, certain rules and restrictions can possibly hamper resale.
7. Market conditions — You don’t buy the market but you want to know what conditions you are working in. (Is it a buyers, sellers or balanced market? Are you in a seasonal market?)
6. Is the property close to transit? Bridges? What about paying tolls?
5. What is the property condition inside and out? An inspector is cheap insurance. Typically, older buildings will require more work, so be aware of that. There may be a chance for sweat equity…
4. Think about resale: Is the property easy to get into but hard to get out of?! What is the type of ownership — strata, freehold, or co-op? Co-ops tend to trade at a lower price because they require 35% financing up front. This may or may not be an advantage to a buyer.
3. Neighbours — Talk to the neighbours before you buy. What is the neighbourhood like? Are there mostly older people, families, or professionals? Keep this in mind, especially in a strata where you live right on the other side of the wall from your neighbours! Does your neighbour have a dog that howls at the moon?
2. Think about the future. Is there a possible transit connection (bridge or train) being built soon? Is there a development going in around the corner, or a half-way house, old folks home, or super complex and how does that relate to you?
1. Mortgage qualification – Most importantly, you need to know your budget. What type of mortgage do you want or need? Best rates are not everything: flexibility or readvanceable principle may be more valuable! Be sure to talk to a professional mortgage broker about your options.
Greg Andruff is a member of a successful Vancouver residential real estate team, Team Andruff.
They strongly believe in helping educate and inform their client to make confident buying and selling decisions in any market. To contact Greg visit www.GregAndruff.com or call 778-899-4267*
Are Foreclosures a Good Deal for First Time Home Buyers?
By Greg Andruff
I had a client say to me the other day, “This listing is a foreclosure. What does that mean? Tell me about foreclosures.” I have worked with clients to buy foreclosures. This type of transaction for first time buyers can be very risky and stressful.
Can there be opportunity when buying a foreclosure?
Yes, but you are going to want to have some experts such as realtors and builders to help you with the process. A savvy buyer will also want to have a capital reserve to deal with the possible damage that will likely have been done to the property and be ready for a lot of work to get the property back to a regular living condition. It will be a long and hard process and for some at the end of the day it pays off, but for many it is not worth the trouble. This type of purchase is not for the faint of heart, or typically for a first time buyer either.
Foreclosure offers are expected to be “unconditional offers” (i.e. “a subject free offer”). Of course the buyer can always complete their “due diligence” in advance of making an offer, by going ahead and arranging for pre-approval on financing, inspection and in the case of a condo, even pre-reading all the documents (Minutes, Budget, By-laws, Rules…and so on). This type of buyer needs to know there are no guarantees the bank will accept the first offer declared at court, so one may be spending time on a deal that may not go ahead. This is the case when additional and more competitive offers are provided in court. There is no requirement to give any advance notification if there is more than one offer.
Buyers should be aware there is no negotiating with the “owner” as the ownership in a foreclosure has now become the bank or creditors. The bank/creditors are expecting an “unconditional offer” because their bottom line is the recovery of their capital. To buy a foreclosed upon property, the buyer decides upon a “price,” and then actually negotiates with the bank in advance of the deal going to court. Once there is agreement on price, they will submit your offer to court for approval. Once the offer is submitted to court everyone else knows the price of your offer because it is now public record. Typically this should not be your best or final offer, as explained following, as the process gets even trickier!
Again once the buyer has gone through all of this due diligence, and arrived at this point, another purchaser may offer more! Anyone is allowed to come to court and offer on the property, since the courts wants best value for the creditors as possible. Often the buyer will likely have to make a second “blind” offer, which will be above their first offer, if someone else bids on the property at a rate higher than the first & original offer. It is very challenging to know what to offer in this case because they are all sealed bids. Again another reason to have a seasoned realtor guiding you!
Furthermore, even if there are no other offers (i.e. meaning you and the creditor pursuing the foreclosure action already agreed on a price), in Canada, the Foreclosure Court judge, called “The Master,” may disallow your offer if it is deemed too low or unreasonable, as it is the courts job to protect the overall position of creditors. It is not like in the USA where there are tones of “good deals.” The Canadian courts look out for all the parties’ involved, not just the group that enacted the foreclosure proceedings. This process is a reasonable check on values to safe guard creditors as reasonably as possible.
The whole transaction is very fragile from the point of view of the potential buyer who can be shifted out of the process very easily. As if that is not enough, there is even more risk! The buyer takes the property: “as is, where is.” In some cases the creditors or previous owners will have sold off the appliances, sometimes even the toilet! Yes in a foreclosure, the court is selling only the realty, not the fixtures! Moreover, the previous owner may have chosen to garner retribution at the “unfair” world. This for example could mean … tossing a can of paint across a room, or flushing a bag of concrete down the toilet and you can bet that they will not have cleaned up before they left. So typically the expectation is to receive possession of the property in a degraded state. As well, in some cases the former owner may not have vacated. A bailiff may have to forcibly remove them from the premises and change the locks.
Now going back to my conversation with my first time home buyer, she decided to continue looking at other properties…which I would typically recommend for most of my clients…That is unless the client is really keen to work through the foreclosure process and have the means, time and ability to manage the risk involved.
Greg Andruff is a member of a successful Vancouver residential real estate team, Team Andruff.
They strongly believe in helping educate and inform their client to make confident buying and selling decisions in any market. To contact Greg visit www.GregAndruff.com or call 778-899-4267*
Ready to Buy? Advice From A Realtor
By Colette Gerber
Ladies, did you know that it’s a Buyer’s market? And did you know about 35% of people buying their first home are single women? As a group we (yes, I too am single) have more disposable income than any other time in history. After you’ve made the decision to buy, the first step should be to obtain mortgage pre-approval.
Lenders are beginning to recognize the power women wield with their disposable income and are willing to lend generously to single females. Personally, I prefer to use a mortgage broker since they will shop a number of lenders to ensure you get the best possible rate without gender bias. Mortgage pre-appproval gives you clout when it comes time to make an offer to purchase. Knowing that you have financing in place, sellers will take your offer seriously. As well, the pre-approval letter-which you should get in writing- establishes how much you can spend on real estate. This ensures you are looking in the correct price range.
In the current Buyer’s market there is a larger inventory of real estate than there are people wanting to buy. As a Buyer, this gives you the opportunity to look at multiple properties and give some thought as to what you like. For most properties, multiple offers are not currently a concern. This is good news since it takes the pressure off having to make a quick decision. However, having said that, if you find something you really like you should have your Realtor write an offer as soon as possible. If the property is that good, chances are others will feel the same way and you don’t want to take a chance and lose the property.
Let’s talk about Realtors for a moment. Did you know that as a Buyer it doesn’t cost you anything to work with a Realtor? Realtors get paid by the Seller only when a deal completes. Working with a Realtor can save you time, money and inconvenience. Time: they search the listings every day to see if anything suits your criteria so you don’t have to spend time on the computer. Money: when it comes time to negotiate, they will do everything they can to ensure you get the best possible purchase price. Inconvenience: they know the pitfalls a Buyer can encounter so a good Realtor will stay involved in the entire buying process, until they hand you your keys. Women know the importance of listening. They understand you want great bathrooms, need closet space to accomodate your shoes and that you don’t care if the floor is ¼” or ½” real or faux wood. I encourage you to work with a female Realtor who “gets” what you want…..
Colette Gerber is RE/MAX Realtor who works anywhere in the Lower Mainland that the business takes her. She was recently awarded her Accredited Buyer’s Agent designation, joining the 1 ½% of BC Realtors with this prestigious accreditation. You can contact Colette by visiting www.colettegerber.com
5 Things to Know Before Buying a Condo
A lot of prospective home owners across the country are today choosing condominiums over private homes for a variety of reasons, foremost among which being the fact that generally, they are a whole lot cheaper to buy and maintain than private homes. That said, there are a number of factors that you should keep in mind, before finalizing the deal on the condo you have laid your eyes on.
Reputation Of The Developer:
This is very important, and you must put in requisite effort to find out about the reputation of the developer in question. Has the individual or the company developed other properties as well, in and around the area? What do owners of those properties have to say about the developer? Further, what is the general market opinion about the developer? This should really not be too difficult for you to ascertain; usually, a few phone calls or visits to brokers in and around the area should give you a good idea.
Condition Of The Condo:
The livability as well as the resale value (if you are looking to buy the condo essentially as an investment) of the property would depend to a great extent on the condition of the condo itself. Remember that a very cheap property may not necessarily make a good buy or a good investment, especially if it is in relatively dilapidated condition. This aspect gets exemplified if the entire building itself is in poor shape and in desperate need of repair. The perceived value of your condo will come down that much more, even if the condition of the condo from inside is supreme. Therefore, make sure you do a thorough inspection not only of the condo itself, but also of the building as a whole, before you finalize your purchase deal.
Percentage Of Rented And Owned Condos
This factor is immensely important, as it will have a major say in the market value of your condo; usually, higher the percentage of owned condos in the complex, higher is the market value. So, assuming that out of 40 condos in a complex, if 30 are owned and 9 are rented, the 40th condo that you purchase will invariably have a better market value than the same in another complex, with the reverse, i.e. 30 rented and 9 owned – even with all other factors remaining constant.
Past Performance Of The Condominium Complex:
This is yet another factor that you must try and do some research on; if condos in the complex have been bought and sold in the past, what have the going prices been like? Also, how do those prices fare, with that of other similar complexes in the area? This will give you a very good idea of the feasibility of investing in the condo complex that you have laid your eyes on.
On a similar vein, you would also like to find out about the time frame that each condo on an average, takes to sell, in the complex. If the general consensus is that condos take a lot of time to sell, you might again want to have a rethink on the purchase.
Maintenance Fees:
As a prospective condo owner and dweller, it is quite likely that you would already be aware of the maintenance fees that are required to be paid by the dwellers of the complex in question. However, a lot of such individuals often make the mistake of not cross-checking beforehand, what exactly do those maintenance fees include – and what do they exclude? You don’t do that!
Broadly, these factors should give you an excellent idea of the aspects to keep in mind, while contemplating the purchase of a condo; together, they remind us that the decision to purchase a house should not just be driven by emotions, but more so by practicality. Unfortunately, a lot of us simply get swayed by irrelevant, extraneous factors that, in the long run, often end up proving to be costly mistakes.
Brett Meade is the Seattle Condo specialist for NW Home Brokers. He sells Downtown Seattle condos and condos in Belltown, Queen Anne and Capitol Hill.
Article Source: http://EzineArticles.com/?expert=Brett_C._Meade
http://EzineArticles.com/?5-Things-to-Know-Before-Buying-a-Condo&id=4129014
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