Does anyone really care what's in Lilly's Brain... I do. But it's my brain. I feel a bit neurotic and conceited thinking that anyone would, but that's the point of a blog right?
It's also the general feeling of society these days. The illusion is over; it's not about simply sharing information anymore. It's all about making damn sure your information is seen, heard and appreciated, even if it's not meant to be.
So where does that leave us? Read and enjoy - I do it because I love to write and if you want to read it, all the better. I guess you wouldn't be here otherwise.
Please suggest topics to me: I am always on the lookout for fresh topics and new ideas.
Thursday, July 29, 2010
First Time Home Buyers: How to Find a Mortgage Broker
Making the decision to buys a house is a huge decision in a person’s life. Before you start looking for the perfect house, you need to find the perfect mortgage broker. Finding any mortgage broker is easy- you can just look online or in the yellow pages. Finding a great mortgage broker is a little tougher; some are not as good as others. So how do you find the broker that is right for you and your family’s home buying needs?
1. Contact your local Real Estate Boards for a listing of brokers in the area. Try for neighbourhood specific realtors: for example, if you’re looking for a house in Sherwood Park, Alberta then try to find a mortgage broker in Sherwood Park.
2. Call the recommended brokers from your list. When you call them make a checklist of items to ask them:
• Do they answer their calls and promptly call back?
• Do they have an up-to-date website?
• Are they educated? Do they know the business?
• Can they provide you with current mortgage interest rates?
• Do they have all of the most recent information on first time home buyer programs?
3. Look for a mortgage broker that focuses on relationships, not fees. If they are interested in building a relationship and are forthcoming and honest about fees and all aspects of the home-buying process, this will benefit you as a first time home buyer.
4. Don’t be afraid to set more than one meeting with several brokers to find your perfect match.
5. Remember: it’s your money on the line! You are the one who will be paying the mortgage and interest so be realistic and self-focused with your needs. The mortgage broker isn’t the one moving in!
Mortgage financing can seem like a scary path, but with the right mortgage broker, it can be a snap.
1. Contact your local Real Estate Boards for a listing of brokers in the area. Try for neighbourhood specific realtors: for example, if you’re looking for a house in Sherwood Park, Alberta then try to find a mortgage broker in Sherwood Park.
2. Call the recommended brokers from your list. When you call them make a checklist of items to ask them:
• Do they answer their calls and promptly call back?
• Do they have an up-to-date website?
• Are they educated? Do they know the business?
• Can they provide you with current mortgage interest rates?
• Do they have all of the most recent information on first time home buyer programs?
3. Look for a mortgage broker that focuses on relationships, not fees. If they are interested in building a relationship and are forthcoming and honest about fees and all aspects of the home-buying process, this will benefit you as a first time home buyer.
4. Don’t be afraid to set more than one meeting with several brokers to find your perfect match.
5. Remember: it’s your money on the line! You are the one who will be paying the mortgage and interest so be realistic and self-focused with your needs. The mortgage broker isn’t the one moving in!
Mortgage financing can seem like a scary path, but with the right mortgage broker, it can be a snap.
Real Estate in Edmonton: What Can You Afford?
Real Estate in Edmonton: What Can You Afford?
Before you start surfing through MLS listings and envisioning the white picket fence, you have to make a budget. Jumping into a house without sorting out your financial situation is not a smart idea and could lead to a catastrophe down the road. Preparing a budget can be a scary thought for most of us (especially when confronted with credit reports and monthly expenses) but it is a necessary task when deciding to purchase real estate in Edmonton or anywhere across Canada. House prices have fluctuated so much in the past decade that people are flailing when in comes time to pay for their homes; taking this first step will help ensure that you are not one of those people.
First, take a look at what you can allocate to your house purchase. To do this you will have to think ahead to the tow main categories of expenses: Mortgage Payments (including principal, interest and insurance) and Living Expenses. To get to these two figures, you first have to lay out all of your current finances and work from there.
• What is your credit card debt?
• What are your current loan debts (if any)?
• What are your current monthly living expenses?
• How much monthly income is coming into the household? (Don’t forget to factor in any known income changes that are coming down the line.)
• What are your current savings?
After adding (and subtracting) all of the involved figures, you should have a monthly figure that roughly represents your net worth – a figure that represents how much money you have to play with when looking at the costs of purchasing a home.
Once you have that figure, your financial provider, or lender will give you a house budget – this number will be your maximum purchase price. Your maximum price is usually higher than the price you will be able to afford down the road a few years. There are other costs to factor in. Experienced Edmonton Real Estate Agents and financial advisors will be able to help you with your budgeting.
Typical One Time Fees can include:
• A property inspection for your new home
• Legal fees, property survey fees and land transfer fees
• Mortgage application and appraisal fees
• Moving and/or packing expenses
It should be noted in some situations, fees can be negotiated or subtracted from the purchase price of the home. This is something to discuss with your realtor.
Projected Monthly Expenses can include:
• Property taxes
• Utilities
• Homeowners Association Fees (may not apply)
• Community League fees (optional)
• RRSP / savings payment plans
• Debt payments
• Living expenses* (food, childcare, entertainment, sports, clothing, gifts, etc.)
• Miscellaneous* (medical costs, etc.)
*In order to calculate estimated living expenses and miscellaneous costs, you will have to collect receipts for the previous year and use those figures, realizing that expenses will not be exactly the same from year to year.
After adding all of your monthly costs up, you will be able to come up with a definitive monthly mortgage payment and amortization rate that will determine what your maximum house price really should be. Remember to factor in the cost of rising property taxes and possible home renovations due to the age of the house (roofs, furnaces, hot water tanks: all of these things are costs that need to think about.)
Here are two final pieces of information that may help you with your budgeting:
It is recommended by the Canada Mortgage and housing Corporation (CMHC.ca) that your monthly house payments (including mortgage, taxes and utilities) should not exceed 30% of your gross household income.
With all of these budgeting tips, you will be able to find your affordable Edmonton property and live happily ever after.
Before you start surfing through MLS listings and envisioning the white picket fence, you have to make a budget. Jumping into a house without sorting out your financial situation is not a smart idea and could lead to a catastrophe down the road. Preparing a budget can be a scary thought for most of us (especially when confronted with credit reports and monthly expenses) but it is a necessary task when deciding to purchase real estate in Edmonton or anywhere across Canada. House prices have fluctuated so much in the past decade that people are flailing when in comes time to pay for their homes; taking this first step will help ensure that you are not one of those people.
First, take a look at what you can allocate to your house purchase. To do this you will have to think ahead to the tow main categories of expenses: Mortgage Payments (including principal, interest and insurance) and Living Expenses. To get to these two figures, you first have to lay out all of your current finances and work from there.
• What is your credit card debt?
• What are your current loan debts (if any)?
• What are your current monthly living expenses?
• How much monthly income is coming into the household? (Don’t forget to factor in any known income changes that are coming down the line.)
• What are your current savings?
After adding (and subtracting) all of the involved figures, you should have a monthly figure that roughly represents your net worth – a figure that represents how much money you have to play with when looking at the costs of purchasing a home.
Once you have that figure, your financial provider, or lender will give you a house budget – this number will be your maximum purchase price. Your maximum price is usually higher than the price you will be able to afford down the road a few years. There are other costs to factor in. Experienced Edmonton Real Estate Agents and financial advisors will be able to help you with your budgeting.
Typical One Time Fees can include:
• A property inspection for your new home
• Legal fees, property survey fees and land transfer fees
• Mortgage application and appraisal fees
• Moving and/or packing expenses
It should be noted in some situations, fees can be negotiated or subtracted from the purchase price of the home. This is something to discuss with your realtor.
Projected Monthly Expenses can include:
• Property taxes
• Utilities
• Homeowners Association Fees (may not apply)
• Community League fees (optional)
• RRSP / savings payment plans
• Debt payments
• Living expenses* (food, childcare, entertainment, sports, clothing, gifts, etc.)
• Miscellaneous* (medical costs, etc.)
*In order to calculate estimated living expenses and miscellaneous costs, you will have to collect receipts for the previous year and use those figures, realizing that expenses will not be exactly the same from year to year.
After adding all of your monthly costs up, you will be able to come up with a definitive monthly mortgage payment and amortization rate that will determine what your maximum house price really should be. Remember to factor in the cost of rising property taxes and possible home renovations due to the age of the house (roofs, furnaces, hot water tanks: all of these things are costs that need to think about.)
Here are two final pieces of information that may help you with your budgeting:
It is recommended by the Canada Mortgage and housing Corporation (CMHC.ca) that your monthly house payments (including mortgage, taxes and utilities) should not exceed 30% of your gross household income.
With all of these budgeting tips, you will be able to find your affordable Edmonton property and live happily ever after.
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