What Are Your Real Closing Costs?

What are closing costs?

What are Closing Costs? Congrats! You saved for a downpayment and now you are ready to buy. The mortgage and downpayment cover the purchase price of the home. There are other costs involved with purchasing a home, referred to closing costs. Consider these when you are budgeting for the full cost of your purchase Appraisal: If you are purchasing a private sale, you will require an appraisal. If you are purchasing a home with 20% down, chances are you may need an appraisal as well. Approx. cost $250-$350. Home Inspection: Whether you are buying a brand new home or an…

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Downpayment Options

Downpayment options

What Are My Downpayment Options? One of the biggest challenges of home ownership is saving the required downpayment. Your lender will be looking for a minimum 5% down payment on your property. There are generally 5 options available. Your down payment can come from more than one source. Using Your Own Savings or Investments One of the most straight forward down payment options is your own savings or investments.  You will need to provide recent 3 month bank statements to show the history of the savings.  It is required that the full amount of  savings for your down payment must be in…

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10 Things to Consider in Choosing a Mortgage

mortgage

10 Things to Consider in Choosing a Mortgage Choosing a mortgage for your specific needs at the best possible rate can be difficult. Below are a few questions to ask before deciding which product is right for you. 1.What is the rate drop policy with respect to pre-approvals? A good lender will pre-approve you at a certain rate for 120 days.  If rates drop during that timeframe, you can qualify for that lower rate.  If rate increases, you still have the benefit of the lower rate. 2.  What factors can affect my approval? While a lender may pre-approve you at a certain rate up to…

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Beware of Mortgage Penalties when Rate Shopping

Penalties

Understand your Mortgage Penalties when Rate Shopping is extremely important! Mortgage rates are at an all time low so it’s important to understand the penalties if you break your terms. Rates for a 5 year fixed mortgage have been hovering between 2.59%-2.99% for several months now. When a client comes to see me for a new mortgage, whether it is for a purchase, refinance or their existing mortgage is up for renewal, I will give them the best rate available. I put them in a product that is going to meet their needs and what is going to save…

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Why I check my Credit Rating every 6 months

Credit rating

When is the last time you checked your own credit rating? I’ve made it a habit to check my credit bureau every 6 months or when I close a loan or credit card and here’s why. I purchased a new computer in the fall.  I had the money to buy it out right but decided to use the 0% financing & no payments for 3 months.  The balance was paid on the very last day and received a stamped confirmation of payment. Two months later, I receive a call from CitiFinancial that I owe $106 in late interest.  I corrected…

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House Hunting: 5 Tips to help with the Homebuying Process

House Hunting: 5 Tips to help with the Homebuying Process

There are so many options when you start the house hunting process. It can be overwhelming! Here are a few house hunting tips to help make the process a bit easier: 1)  Get Pre-approved First of all, the #1 thing in home buying is that you need to know how much you can afford before you go house hunting. This saves grief and frustration from looking at homes that are beyond the reach of your budget. In addition, it also puts you in a better position when making a serious offer. There is a difference between being pre-qualified and pre-approved. When you are pre-qualified, a mortgage…

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4 Signs You’re Ready to be a Homeowner

4 Signs You are Ready to Be a Homeowner? Are you ready to be a homeowner? Buying a home is a big commitment that is exciting and nerve wracking. How do you know if you are ready? Here are 4 signs that you are ready to take the plunge into home ownership.   1) TIRED OF RENTING Finding that ideal property to rent for a good price can be tough! If you are tired of being a transient moving from one rental home to another because you have no control on landlords decisions; maybe it’s time to look at what…

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Maximize your RRSP as a First Time Homebuyer

Are you a First time Homebuyer looking to buy this spring/summer? First Time Homebuyers can use up to $25,000 of their RRSPs without facing any holding tax and you have up to 15 years to recontribute those withdrawn RRSPs. This is the time to maximize your RRSP contributions to build your downpayment. First Time homebuyers who are looking to buy their first home in the $300,000 price range, will require a minimum 5% downpayment of $15,000 plus additional $3000 for closing costs (home inspections, legal fees, etc).   If you are a First Time homebuyer and are a few thousand…

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Buy now or wait for the rates to go down?

Buy now or wait for better rates ? Recently I was asked a great question from a local realtor.  Her clients are looking to buy BUT are on the fence about whether to buy now or wait 6 months to see if the interest rates go down. With the state of the economy now, there is anticipation that home prices may drop in the future, however there is also talk that mortgage interest rates are on the increase. What is the best option for saving money? Buy now or wait 6 months? There is no crystal ball in the mortgage world. …

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4 Tips to Manage a Layoff

4 Tips to Manage Your Finances When Faced with a Layoff The Canadian economy is in a recession and there are uncertain times for many. Low oil prices and the change of both Provincial and Federal government leadership has had a tremendous impact on the economy, resulting in many layoffs in 2015. More layoffs are predicted in the upcoming months. What happens if you have lost your job or are faced with a huge income cut? Losing a job or facing an income reduction is an emotional time when many are already living pay check to pay check. Step out…

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