5 Jul

All About Pre-Approvals

Mortgage Tips

Posted by: Lynn Nequest

All About Pre-ApprovalsAre you in the market for a new home? That’s great – but if you’re not already pre-approved from your mortgage broker, be sure to read on.

Pre-approvals are very important for two reasons.

They give you confidence in knowing that a specific amount of financing is available for you.
A pre-approval can put you in a positive negotiating position against other home buyers who aren’t pre-approved.
Not all pre-approvals are the same, though. There are essentially three different kinds.

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20 Jun

The Right Kind of Debt

Mortgage Tips

Posted by: Lynn Nequest

The Right Kind of DebtPut yourself in a bank or lender’s shoes. Someone comes into your branch and asks you to politely loan them $300,000. You are a big bank, but $300,000 is still a lot of money. How do you ensure this person is going to pay back the money you loan them, on time, and in the right amount? Look at their record for borrowing other people’s money.

This is why taking on different kinds of debt when you are young is a good thing, but it must be within reason.

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11 Jun

Making Smarter Down Payments

Mortgage Tips

Posted by: Lynn Nequest

Making Smarter Down PaymentsMortgage Insurance Premiums. Many people know what they are- an extra cost to you the borrower. But not many people realize how they are calculated. Understanding the premium charges and how they are calculated will help lead you to making smarter down payments.
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6 Jun

Last Minute Credit Check

Mortgage Tips

Posted by: Lynn Nequest

Last Minute Credit CheckAs I’ve said many times, one of the single greatest determining factors in whether you can become qualified for a mortgage and the interest rate at which you do, is your credit history. Many people unfortunately don’t know this, and can be completely blind-sided when it comes time to qualifying.

However, the truly unsettling idea about credit scores and their relation to home financing is the fact that most people do not even know they are extremely important even after you have been approved…

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16 May

5 ways you can kill your mortgage approval

Mortgage Tips

Posted by: Lynn Nequest

5 ways you can kill your mortgage approvalSo, you found your dream home, negotiated a fair price which was accepted. You supplied all the needed documentation to your mortgage broker and you are waiting for the day that you go to the lawyer’s to sign the final paperwork and pick up the keys.

All of a sudden your broker or the lawyer calls to say that there’s a problem. How could this be? Everything has been signed and conditions have been removed. What many home buyers do not realize is that your financing approval is based on the information the lender was provided with at the time of the application. If there have been any changes to your financial situation, the lender is within their rights to cancel your mortgage approval. There are 5 things that can make home financing go sideways.

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7 May

What is a Refinance?

Mortgage Tips

Posted by: Lynn Nequest

What is a Refinance?Refinancing a home is one of those things where people understand what it is but have trouble explaining how it works. To put it simply, refinancing your home allows you to access the equity you have built up, by changing the mortgage amount.
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19 Apr

Closing Costs

Mortgage Tips

Posted by: Lynn Nequest

Closing CostsClosing costs are a necessity when it comes to purchasing a home. They are not included in down payments, they are not included in monthly mortgage payments, nor are they included in the purchase price of a home, but you are still responsible for paying them, in full.

Knowing they exist is half the battle, and correctly budgeting yourself to pay them when the time comes can be a huge weight off your shoulders, especially when the alternative is finding out a week before you close on the purchase of a home that you still owe thousands of dollars.

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4 Apr

3 Mortgage Terms You Need to Know

Mortgage Tips

Posted by: Lynn Nequest

3 Mortgage Terms You Need to KnowPrepayment, Portability and Assumability

Prepayments

One of the most common questions we get is about mortgage prepayments. The conditions vary from lender to lender but the nice thing about prepayments is that you can pay a little more every year if you want to pay off your mortgage faster. A great way to do this is through prepayments.

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20 Jul

How to save Money for your Mortgage

Mortgage Tips

Posted by: Lynn Nequest

Buying a home can be the single largest investment that most of us will make; this can also make it a rather daunting prospect if you’re trying to save for a down payment and you still have to pay rent.

The financials

Your first step in buying your own home is to look around at what’s available and figure out what size of down payment that you’ll need to accumulate to reach your goal.  You can break your total over an extended period of time and have your bank automatically take payments from your account.  In this way, you don’t even have to think about the payments at all.  They’re simply debited each and every month, and deposited into a savings account of your choice.  At times a TFSA has a higher interest rate than a regular savings account, so check out your options.

Keeping it reasonable

A mortgage can mean a hefty monthly payment, and it doesn’t include taxes, utilities, and maintenance.  All of these things should be kept in mind when considering how much house you can afford.  It’s true that, especially if you’re a couple buying their first home and considering growing your family, you will need more space at some point, but don’t buy more house than you’ll ever need.  The tendency to “keep up with the Joneses” will sidetrack those who aren’t careful.  If you’re trying to save for a down payment, you’ll reach your goal sooner by keeping your total home cost low.

Prioritizing

At times saving for your mortgage will mean having to deny yourself in other areas that you may have enjoyed previously.  Travel might not be an option, or regular dining out at restaurants.  You may have to stretch your wardrobe to last longer than it has previously, or reduce your cell phone bill.  Whatever needs to be done, make sure that you keep your end goal in sight.  These are temporary measures, and ultimately the result will be the purchase of a place to call your own.

Review

Bank interest rates change so keeping an eye on yours might mean that your savings grow faster than you’d anticipated.  Even a quick online search can help to bring up several different options depending on your needs.  You can sometimes find higher interest rates if you’re willing to “lock” your money in for a predetermined period of time.

Rent your extra space

If you’re currently renting, is there an option to sublet a room in your home?  If so, consider having a roommate help to pay the bills and allow your savings to grow even faster.  You could also consider a renter once you’ve purchased your home; this is often most convenient when there’s a finished basement or bonus room above a garage, but many people make this work in a variety of ways.

It often involves big numbers, but don’t be put off by your first home purchase.  Where there’s a will, there’s a way, and home ownership can be just around the corner.