Category Archives: Home Purchase and Improvement

How to Purchase a Home

Purchasing a home can be an exciting and monumental event in any person’s life, especially for the first time. The anticipation of owning a house and enjoying all of the associated upsides and benefits is understandably exhilarating.

However, in the midst of all the excitement should be a degree of awareness and extensive preparation. Purchasing a home is one of the most costly and time-consuming events in the lives of most individuals. Therefore, mindfulness of the forthcoming advice (and governing oneself accordingly) is extremely important and will reap long-term benefits.

Be Sure to Have Your Ducks in a Row

One of the most common mistakes of aspiring homeowners is their failure to fully prepare before going forward without dotting their Is and crossing their Ts. Bankrate explains that before any individual purchases a home, they should increase their credit score, determine an affordable budget, save a considerable amount of funds must aside, and then be sure to get preapproved for a mortgage.

It’s also important for aspiring homeowners to understand that following the foregoing steps to prepare for homeownership can potentially take years; the duration of time especially depends upon the state of the individual’s financial health. Nevertheless, it is better to wait a few years and then purchase a home (at the right time) than to immediately buy a house without the proper safeguards and become subject to financial hardship. So many people who find themselves in debt due to poor economic choices never get out that hole. Having your ducks in a row will eventually pay off.

Expect the Unexpected

Even after having the right credit score, budget, funds, and mortgage all lined up, expecting the unexpected is still absolutely paramount, affirms CNBC. Purchasing a home often comes with additional, associated fees, such as county tax, state tax, and property tax. Then, there’s maintenance fees, repair costs, and expenses which are linked to furnishing the home. Suffice it to say, all of these matters should be anticipated and prepared for. Similarly to most situations, it’s always better to have the extra money put aside and not need it, than to need extra money and not have it.

Consider the Physical Environment

Another important aspect of purchasing a home is the environment, as noted by Nerd Wallet. No matter how great a house is, the environment always makes a difference. Crime rates and proximity to banks, grocery stores, and other places of business are also very important. Moreover, aspiring homeowners should assess the quality of the neighborhood and other surrounding homes. If all looks great and the funds are there, go for it.

If the physical environment is not up to par, you might be better off continuing your search in other locations. There are always better, more desirable options.

 

Authored by Gabrielle Seunagal

Programs to Tranform Housing Costs For Canadian Families Today

Canadians spend more than 40% of their monthly income on housing, which is extraordinary. However, this dilemma is occurring all across the United States as well. Because of the stagnation in wages, but the increases in housing and other living costs–Canadians are struggling to stay above water. Some Canadians can only dream of becoming a homeowner. Canadians who do manage to acquire a home struggle from month to month with bills and a mortgage–most just one paycheck away from homelessness. Today, there are many new programs cropping up that are meant to help middle class Canadians achieve their dream of home ownership in a very affordable manner, and that is what we are going to talk about here.

These programs ensure Canadians can own a decent home without being underwater and without going above their own income limits to do so as well. So, let’s take a look at how some of these programs work.

Bridge to Home Ownership for Canadians

What is great about some of these new programs emerging lies in how they stay honest with the consumer. These bridge to home ownership programs are about helping Canadians spend less on a home, but still have the same home quality. If credit is an issue, financial experts work with families to help them get to where they need to be. How does it all work really? Well, it is as simple as starting an application of interest! You can get a home and not feel like your drowning in debt doing so!

These programs, like “Sandstone Managements Program” help those Canadians find housing that fits their budget and family size. You can get into a home of your choosing while you work to repair your credit, and you aren’t going to be broke doing this either. Many Canadians are seeing this as a far better alternative than renting an apartment or home, yet never really getting anywhere. The bridge to home ownership programs allows Canadians to get into a home under a lease purchase agreement. Financial experts then work with them to help them get their credit where it needs to be within a year or two to finally get a traditional mortgage agreement.

Realtors' signs are hung outside a newly sold property in a Vancouver neighbourhood where houses regularly sell for C$3-C$4 million ($2.7-3.6 million) September 9, 2014. Chinese investors' global hunt for prime real estate is helping drive Vancouver home prices to record highs and the city, long among top destinations for wealthy mainland buyers, is feeling the bonanza's unwelcome side-effects. The latest wave of Chinese money is flowing into luxury hot spots. But it has also started driving up housing costs elsewhere in a city which already ranks as North America's least affordable urban market. Julie Gordon/Reuters

 

For the most part, the down payment for these programs is fairly reasonable, often at around 3.5%. So, if you’re looking at a $109,000 home, you’ll need at least $4000 upfront and then pay around $800 per month, with some of that going to your future mortgage. This strategy works far better for Canadian families than simply renting an apartment or condo! So, home ownership doesn’t have to be wearisome. There are clear pathways to this dream, and if you manage your credit well there is a way to gain a traditional mortgage at a low interest rate too!

It is wise to Google what programs are available where you might reside, and to check within our own district in particular. There are various programs that can really encourage Canadian families who want to own their own home. The following below checklist can help you get organized and gain easier approval for one of this bridge programs as well:

  • Make sure your income is 3 times the monthly mortgage costs of a home you want
  • Have a clean banking record for the past 3 months
  • Be prepared to have past rental references
  • Have personal references on hand
  • Have your past years taxes available
  • And have a budget in place 

 

 

 

 

 

Can You Afford A Mobile Home With Bad Credit?

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This is a big question for Canadian families.  If you’ve been renting and are ready to finally become some form of a homeowner–be it a mobile home, or a traditional one–can your credit hold you back from achieving this dream? For so many it feels unobtainable. We all suffer from financial mistakes, and some of these can really hit our credit hard. It would be nice if credit didn’t have such a tough role to play in what we can and can’t have in life. If you can afford it–that is what should matter, right? You’d think, but many times over this is not the case. So, can you really afford a mobile home with credit problems?

Bad credit is not permanent, you can overcome it. Finding a lender with bad credit can be rather difficult though. However, there are programs available to help. If you’re a Canadian family living within the US, you might be eligible for the USDA financing. You might also be eligible for assistance through a state program or rather, HUD. If you reside within Canada you’re going to want to look for similar kinds of lenders that work with those living in rural areas.

Financing a Mobile Home With Poor or Fair Credit

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This can be a challenge under the best of circumstances, but for those families with dented credit–they have to prove their financial ability to pay. They can’t have late payments and they have to be flexible when shopping for the mobile home they want. There are steps one should take to prepare for this big plunge, so let’s list those for you now. This might make the whole process less vexing and definitely less stressful. We all make mistakes, so don’t let the past make you feel like you deserve to be treated less than any other customer! We want you to also remember, while you might be able to get financing with bad credit, you don’t want to get sucked into something you’re not going to be afford. Poor credit leads to higher interest rates and more. Don’t jump on the first loan offered–this would be a big mistake!

  • Pull your credit report and take a good, hard look at it. Look for any discrepancies, and definitely look for charges or actions which you might have been falsely identified for.
  • Devise a way to come up with a decent down payment.  This could be through a trade or some other collateral you might hold.
  • Work with a credit specialist to try and clean up some of your credit concerns. There might be some items on your report that can be legally removed and dramatically improve your credit score.
  • If you have to choose something smaller than what you really want, choose it. You can always work your way up into what you really would like a few years later.  Remember it takes patience and hard work to beat bad credit and climb out of the hole.

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The most important tip we can share with families who are attempting to get approved for a mobile home is to not be suckered. There are those who will prey on families who are vulnerable. Keep your bearings, think clearly, and plan before jumping into anything. You’re trying to build a new life, not create another with even worse problems! You will get that home of your dreams when you think ahead.

Are You A First Time Homebuyer: 6 Smart Home Purchase Tips

Here is an interesting fact for you:  Research shows that 2 out of every three Canadians are homeowners–now that is amazing isn’t it?  How’d they do it and how’d Canada become the leader for having more families who are actual homeowners? Do Canadians have different priorities? Not really, they just invest in different ways!

First Time homebuyers

Making that amazing leap from a renter to a home buyer can be a wildly fantastic time for a Canadian family!  There are so many things that need to be carried out–the process can feel a bit overwhelming at times, but there is nothing like finally having the say so over how you decorate your home, what your backyard looks like, and how many pets you can have!  When you make a home purchase it is normally for a lifetime, so relying on some smart home purchase tips can improve upon a first time homebuyers outcome!

From getting to know the neighborhood to understanding and preparing for closing costs; there really are some heavy practical concerns first time homebuyers can sometimes feel like they’re drowning in. Shopping for your first home is an exciting experience–at least it should be; however, again, for many first time homebuyers across Canada  this can be extremely intimidating.  If you don’t know the facts concerning purchasing a home then you’ll most certainly be in the dark.  There are so many areas of research first time homebuyers need to look into; specifically before they dive headfirst into some murky mortgage agreement they might not fully understand.

There is such a thing as: First Time Homebuyer Shock–which happens when you’re hit with the unexpected.  A family should be ready to negotiate for what they want if their first time buying experience is going to meet expectations.  In fact, negotiating and collaborating are critical to ensuring a pleasurable home shopping and buying experience for Canadians all across the region! Let’s get started with the following smart purchase tips to ensure Canadian families start off aimed in the right direction for the best outcome possible.

The 7 Smartest Home Purchase Tips Every Canadian Should Know

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The first tip we want to share with Canadians across British Columbia concerning home buying is this: Pay off your debt first!  The fact is, you’re going to be in debt purchasing a home so you don’t want a large amount of bills eating away at your income at this time.  Paying the practical things off first means having more money available to focus where it counts the most.  You’ll definitely alleviate stress and anxiety, which always arises from crushing debt.

Tip 2:  Make certain you’re getting the proper property insurance

You want to be covered for everything from theft and property damage, to liability claims, and natural disasters like flooding, hail, fire and even high winds or tornados.  Also, make certain that the insurance you choose offers coverage for your personal belongings within your home as well.  Anything could happen!  From leaky pipes to a water heater going bad in the basement–the right coverage ensures you that you’re investment is in good hands and you won’t end up like a bad joke!  You might even want to consider an umbrella policy for added security and protection.

Tip 3:  Keep all of your receipts for home improvement costs to receive a reimbursement or other substantial savings

It’s important to store receipts for home improvement items.  The receipt will protect you in case a purchase turns out wrong, or is flawed in some way.  These receipts also increase the value of your home because they are your proof for your investments.  Say you have your roof rebuilt and then decide you’ll want to sell your home.  What was once a $250,000 home can turn into a $300,000 home.  This will dramatically increase your own ROI just by adding energy efficiency and curb appeal.

Tip 4:  Watch your spending on home improvements and interior decorating:  They can mount up to sizable debt fast

Costs can add up fast, there is no doubt about it.  Plan a budget for any home improvements and/or decorating and understand the difference between the two of these.  Installing a sidewalk is going to be a better initial investment than planting an Apple tree.  While both are great for value, you have to decide what is going to give you a better ROI initially, then go from there.

Tip 5:  Make certain you have a trustworthy inspector on your first time home before proceeding

Once it comes down to a home inspection and walkthrough, make certain you have a home inspector you feel comfortable with and who you have no doubt–is honest.  From ensuring there are no fire hazards in the home, to checking stability of the foundation of the dwelling; you need to be prepared for what might happen.  Most walkthroughs end on a positive note, but just understanding how it all works is important!  You don’t want to find out you’ve ended up with a bad investment when it’s too late!

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