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Things Home Buyers Always Do Wrong

Not Having Their Financials In Order

It’s OK to have fun during the process, but not coming prepared can quickly turn the excitement phase into a panic phase if you don’t have your financials in order.

A pre-approval for your home loan and/or proof of funds letter for the downpayment is one of those golden things that sellers look for to let them know you are serious and not wasting their time.

Always have several versions of your proof-of-funds letter and your pre-approval handy at all times. This will put you above the competition when you find a home that you want to go after.

Not Researching The Neighborhood

Knowing a neighborhood by only listening to what your realtor is telling you, as opposed to actually researching the neighborhood, are night-and-day differences. It’s important for you to actually speak to the locals at “Mom-and-Pop” stores, cafes, restaurants, markets, etc.

Immersing yourself into the neighborhood as a “local” will allow you to catch information that will not be disclosed by your realtor. This will give you a clearer picture of your surroundings.

Always, ALWAYS go back to the neighborhood at nighttime. It amazes me how one neighborhood can be in the …

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Real Cost Of Buying A Home

Pre-Closing Costs

  • Home Inspection. Getting a professional home inspector is always a smart decision. Things heating, electrical, and plumbing problems aren’t always obvious to untrained eyes. A qualified home inspector is there to help uncover any problems that could create quite a financial burden to buyers.
  • Appraisal. More and more mortgage lenders are asking for home appraisals prior to closing. Before they agree to lend you the money to purchase a home, lenders are just making sure that you haven’t paid too much for a property. An appraisal gives the lender another opinion about your potential new home and gives them the peace of mind that the value matches the price you have agreed to pay.

Closing Costs

  • Land Transfer Tax. In Ontario, buyers are required to pay up to 2% of the purchase price of a home as a tax. In the City of Toronto, there are additional taxes on top of that. These can be significant amounts given the price of housing. First time home buyers are eligible for tax refunds but it is always wise to talk to your real estate professional regarding this significant cost.
  • Mortgage Insurance. If you cannot afford to put down 20% of
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Buying a Quality Luxury Flat

There is no definition of what constitutes a “luxury flat”, but many will agree that such a property will have a number of features that place it at the far more desirable end of the property market. These can include the property being situated in a prime neighborhood, a huge amount of space and excellent layout, and the finishes and cutting-edge gadgets integrated into the home.

When looking to buy a luxury flat, here are some tips which will help any luxury home buyer get excellent value for money and also be reassured about the quality of the property that they are purchasing.

Firstly, it is important to consider the neighborhood where the property you are thinking of buying is situated. As mentioned above, this is one of the first aspects that makes your apartment or house special when compared to other offerings on the market. As well as affecting the price of your property, it will also affect its live ability and your enjoyment.

For those with budget to spare, investing in a place in a prime location is always going to be a good thing. The properties will very rarely decrease in value, and if you decide to …

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Buying Foreclosed Homes

Before you can even consider making an offer on any foreclosed properties, you must ensure that you are working with a real estate agent that is able deal with banks and other institutions that would own such properties.

Remember that you will be purchasing the property from an institution, rather than an individual, so it is important to work with somebody who has experience in the area. If you don’t you may find that you end up having to wait a lot longer to make the purchase, even if you already have the money to pay for the property.

Financial institutions are looking to sell off their foreclosed homes, but at the same time they want to be able to ensure that the new owners of the property will be able to make the relevant payments. Being able to offer a healthy down payment is a good start, but showing that you have been able to secure a loan beforehand shows that a lender holds you in good stead, which means you have more chance of making a successful offer on a property,

Of course, all of that is advice on what you should do to identify and be prepared …

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Economic Considerations For Buying A Home

  1. Tax deductions: Although, for many, especially, those in, so – called, high SALT states/ regions, the tax deductions, associated with home ownership, are less than they have traditionally been, there is still an, up – to $10,000 tax deduction, on one’s federal tax return, for the state and local taxes, we pay, Therefore, when we consider, whether, there are advantages, to buying, instead of renting, this must be factored in. If the net – numbers, of renting, versus, owning, are compared, and if they are close, home ownership often becomes more economically, advantageous, because of the appreciation, and equity, involved, in owning.
  2. Mortgage/ mortgage interest: Mortgage interest, up to that paid, on a $1 million mortgage, is still, tax – deductible, so, when one considers, if it makes sense, for him to purchase, this must also be considered. In addition, a wise consumer considers, whether his monthly costs, are within their personal comfort zone, and strengthens, their enjoyment, etc.
  3. Local real estate market: While there is, often, much discussion, about the overall, real estate market, every local area, is different, and certain ones, appreciate more, and/ or, depreciate, less, than other areas/ regions/ neighborhoods! One should, carefully, consider, whether, the
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Banks Are Approving Buyers, But Not Houses

This is a new trend I’ve been seeing in my deals and hearing about from colleagues and bankers in the business.

These days, when the banks send in their evaluators, they don’t just assess value. They also report back about any cracks in foundations, or major up-keep issues. This raises red flags on the file and the loan officer will likely ask to see the building inspection report.

Inspection report can bring up more problems than expected

The state of a property tells a story. Overdue maintenance on brickwork, cracks in the foundation, a deteriorating leaking roof will all significantly lower the value of a property.

When a property is flagged and the loans officer requests the inspection report, you must oblige, even if you put in an offer that was not conditional upon an inspection.

You must go back to the vendors and explain that the bank is insisting on a report.

Of course, this usually happens near the end of your timeline to get the mortgage approval.

If the inspection wasn’t part of the initial deal, the vendors can refuse to let you do an inspection.

This happens quite often because reports often bring up more problems than …

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Essentials When Buying Property

Location

One of the most important factors to consider when buying a home is the location. The location is as important as the price of the property. Believe it or not, the location affects how you live later on.

Imagine buying property away fro civilization, how would you suppose to find a good commute to work? Unlike buying aroperty that has good security system, you would surely live at peace and feeling safe every single day.

When buying property, first determine where the location should be that would best fit your needs.

Neighborhood

As important as location is the neighborhood. When you visit the location, try to know the status of the neighborhood and make sure they are friendly and nonviolent. It is important that you are comfortable living with your neighbors. Otherwise, it would be a regret in the end.

You can perhaps talk to the neighbors during your visit and ask them about the people living in the location. Perhaps they can give you better insights about the place and the people living nearby. They can even tell you how safe and convenient the location is.

Price

When it comes to buying aroperty, you can never go wrong …

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Buy a Home With Bad Credit

Rent To Buy

Rent to buy is an excellent route into property ownership for many people with bad credit. The rental period will prove that you are able to handle the monthly payments for a year or more, which will make it much easier to secure a mortgage on the house when you are ready to buy.

Furthermore, every rent payment becomes equity in the property, which means that you essentially pay your deposit while living in the home. Only having to deal with the current homeowner in many cases is also an added bonus, as they can treat you like a tenant rather than a homeowner.

Research Federal Mortgage Programs

Many people actually qualify for federal assistance in securing a mortgage and may not even realise it. Speak to a qualified real estate agent and they will be able to let you know if your current situation means that you are able to take part in a federal mortgage program like the ones offered by the Veteran’s Administration or the Federal Housing Administration.

There are also a number of state-wide and local programs that also offer assistance to those who are trying to get on the property ladder despite …

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Most Home Buyers Seek

  1. Price and costs: While most want to live, in the nicest house, they can. and proudly, show – it – off, to their friends and family, what good is buying a home, if it makes your life, more stressful, etc? Objectively, and introspectively, consider, the impact of reducing your other assets, because of the amount of your down – payment. Will this create stress? How much are the monthly carrying charges, and can you, not only afford it, but do so, within your personal comfort zone? Do you have the necessary reserves, for contingencies, including; short – term employment gaps; necessary repairs; desirable renovations and/ or alterations, etc? Don’t become, house – rich, but hurt yourself, in terms of stress, etc!
  2. Size and features: How many rooms do you need, and how does compare with what you want? What are your present needs, in terms of size and number of bedrooms, bathrooms, etc, and what do you anticipate in the short – term, and longer – term future? Are you ready, willing and able to maintain, and care for, whatever house, you purchase? Will you personally do the work, or will you hire someone else to do so, and
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Buying an Older Home

Pros

  • Architectural details-in some of the older homes for sale you may be able to find some of the intricate woodwork that was carved out or crafted manually by carpenters as was done decades ago because there were none of the modern tools carpenters use today. This makes the architectural work irreplaceable and unique. There are no two older homes that will be similar in their style and look. Older homes are meant for those that enjoy the artisanship of that time.
  • Cost-effective-the one reason that older homes are relatively cost-effective is that you can get more square footage for a better price that you would pay for a new home with the same amount of square footage.
  • Bigger yards-when older and newer homes for sale you will most often find that the older houses have a bigger yard. This extra space can give you more room for a garden, to put in a swimming pool, and pets and children have more room to move and play. With larger yards, your neighbors are not right next to you as many new homes are.

Cons

  • Cost of refurnishing and repairs-sometimes an old home was not maintained properly by the owner so
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