Get Help Buying Your First Home

The problem most renters face isn’t the ability to meet monthly mortgage payments. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent. But saving for this lump sum doesn’t have to be as difficult as you might think.

Talk to a mortgage broker or a Realtor about the different possibilities that could transition you from renting to owning. These conversations don’t cost you anything, and come with no obligation to actually buy. Take the time to do the research: you might be surprised how affordable home ownership actually is!

You can buy a home with much less down than you think.

There are some local or federal government programs (such as 1st time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.

You may be able to get your lender to help you with your down payment and closing costs.

Even if you do not have enough cash for a down payment, if you are debt-free and own an asset free and clear (such as a car), your lending institution may be able to lend you the down payment for your home by securing it against this asset.

Create a cash down payment without going into debt.

By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.

You can buy a home even if you have problems with your credit rating.

If you can come up with more than the minimum down payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.

Talk to an Edmonton Realtor about the possibilities of buying real estate in Edmonton.

Five Great Things About Home Ownership

If you’ve been on the fence about homeownership, now is the time to take a leap! Don’t let the negative press deter you from one of life’s greatest joys.

Take a look at five short and sweet reasons that homeownership is great!

1. Equity. When you pay rent, you never see that money again. It is lining the landlord’s pocket. Yes, buying a home may come with some hefty initial costs (downpayment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today’s market.

2. Relationships. Renters tend to see their neighbours come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbours stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress.

3. Predictability. Well, as long as you have a fixed-rate term on your mortgage it’s predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you’ll need to pay for the gutters to be cleaned, and so on.

4. Ownership. Okay, this is a given. Homeownership means you “own” your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart’s desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak!

5. Great Deals. It’s a great time to buy. Interest rates are at historic lows. We’re talking 4.0 percent instead of 6.0 or higher. This means big savings for today’s buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a downpayment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you.

There are lots of great expanding communities and new developments cropping up in the Fort McMurray real estate market. Learn more about living in Fort McMurray communities before you start your house hunt, and you’ll be ahead of the game when buying Fort McMurray homes.

The First Time Home Buyer

Taking the plunge into home ownership for the first time can be an intimidating prospect, but remember that every home owner has been a first-timer at one point or another.

There is a huge emotional component that goes along with the change from renting to owning. You take on significantly more responsibilities, which can be intimidating. But you also enjoy all the benefits of making decisions yourself, without a landlord to run things by, and of being able to take complete pride in the results.

Buying a home is a serious process that requires research, dedication and time. The decision to purchase real estate isn’t one that should be made lightly, so it’s probably a good thing if you’re a little nervous. As a first time home buyer, you must realize that this is probably the largest investment you will make during your lifetime. It can be a life-changing event, which puts you in charge of property maintenance, repairs and taxes. Paying your mortgage is a more serious financial obligation than paying rent has been. But paying on time is a huge step in establishing credit for yourself that will be valuable to you later in life.

Perhaps you are still convinced that buying your own home is out of the question, at least in terms of cost. The idea of saving a down payment can be one of the most daunting things for many first time home buyers, and can run as much as 20% of the home’s purchase price. For a home with the modest price of $125,000, this 20% amounts to a seemingly huge $25,000!

Thousands of people have the same fears you do, and yet were able to afford a home of their own. There are many avenues to home ownership, even for those with limited means. Don’t give up just because you don’t have the down payment yet: the reward for persistence is home ownership!

Many renters could be homeowners today if they approached the house hunt with the same determination they bring to a job search, or even to shopping for a car! Because real estate seems like such unfamiliar terrain, people often take one look at the numbers and declare “I just can’t do it”.

The biggest hurdle you have to face as a first time home buyer is the down payment. Many can easily afford a monthly mortgage payment, which is often similar in cost to rent. But how do you come up with the $15,000 or $20,000 to use as a down payment?

It’s important not to get tunnel vision. When you think of a home, do you imagine an attractive single-family house in a good neighbourhood in your present community? If you know those homes are out of your price range as a first time buyer, this narrow view of what your ideal home is could be holding you back. There are some fantastic homes out there available in every price range!

 

There are some fantastic Edmonton Homes waiting to be snatched up by first time Edmonton Home buyers if you know where to look. By keeping up with Edmonton real estate blogs, you can ensure you know the current Edmonton real estate market trends and are positioned to buy at the perfect time.

Renting vs Owning

Many people rent homes for a long time, constantly wondering if it’s the right time to make the big move and buy their first home. There are several important differences between renting a home or an apartment and owning your own home.

When renting, you’re not as tied to your home in the same way that you are when you own it. You leave many of these decisions and choices up to your landlord, who owns the property you rent. It’s easer to relocate to a new neighbourhood or city, especially if you find yourself having to move on short notice. All you have to do is wait until your lease is up. It’s possible the dollar value of your home may increase, but this won’t benefit you: it will benefit your landlord.

On the other hand, owning your own house or condo gives you choices you don’t have as a renter. You are the one who gets to pick what carpet you want, what flooring would be nice in the kitchen. You can decided when to water the lawn, when to replace the old leaking dishwasher. There are lot more responsibilities when you own your how home. Because you own the property, you have to deal with all the problems that might arise — there’s no landlord to complain to when the water heater breaks!

Owning can also make you feel more tied to a particular community and city than renting does. Most of the time, owning a home makes you feel more “settled”, even if you plan to stay only a few years. For many people, a lot of the value they get from their home is connected to the location their home is in. It can become financially relevant for you to take a stronger interest in your own neighbourhood and pay attention to what’s happening around you.

The financial differences between renting a home and owning a home is also significant. When you rent, your monthly housing cost goes out the door and doesn’t benefit you beyond putting a roof over your head. When you move from your current rental, there’s no financial benefit. But when you own a home, each monthly mortgage payment builds equity and increases the amount you own of the property, increasing your net worth. Your home will increase in value over the long term, so when you’re ready to move five, ten or twenty years later, you will likely be able to sell your home for more than you paid for it!

If you live in Ontario, think about buying Kitchener Homes or Waterloo Real Estate with some of the best Kitchener-Waterloo Realtors available in the area.