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First-time homebuyer? Here’s what you need to know

first time home buyer

Becoming a new homeowner

For many homeowners, especially the first time-owners, this is going to be a tough summer.  Many buyers face intense competition and run into bidding problems over real estate markets that typically favour deliverers. However, this does not mean you are not expected to leave your hopes of owning your first home to the side. That doesn’t matter. The first-time home buying process is always difficult, finding the mortgage broker that’s right for you always helps.

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Be realistic

Do you know that HGTV shows make it very enjoyable and fun to get your house buying? The buyers Only check three houses, found their dream home, get the approved valuation under their budget, all on the same day. That is not how the IRL operates, indeed.

“A real estate bureau in Chicago says most of the purchasers after see three homes are saying, ‘wow, this is nothing we want. We got to see more.” The hunting outside your houses may take much more time, stressful or exhausting. Open homes and home appearances can take up your weekends and expand into your nights over the week, while it can be an intrigue to watch fresh online listings.

Don’t bite off more than you can chew

Specialists suggested that you prepare a lender before you formally begin to hunt. This can be a perfect starting point to find out what you should do with money. But only because you have had a set approval for a fixed sum does not suggest you have to pay that much. Creating a budget will decide how much money you spend the remainder of the month.

Take the time to check for the demand after you have located a cap to realize how far the budget can go. “Get realistic about what your money can buy.” And when we fall in love with a spot, it can be emotional for the buyer to raise and they’re budgetary for home. Yet realtors say it could be a major misunderstanding.

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Play it cool at the open house

At last, you found your dream home. This is fine, and you just get to start making your deal. Be cool. To initiate a partnership helps create contact with the seller agent, but oversharing can lead to problems. E.g., the agent gets nervous about the fact that you live in the city and tell your parents to accept any of these expenses. There are also questions for those who work around it because there isn’t much.

It’ll about a works placement expects to get easier to run and the strategy to stay consistently smooth and push the closing table away from you.’

Be prepared for rejection.

Sellers have head positions in many housing markets, which means considerable competition—especially at the consumer level. A lot of people would not consider the first bid. Many potential buyers do not send a bid until they have seen 15 or so houses. Whenever it hurts to be denied, as time goes by, the process gets better—the same time.

Lay low once your offer is accepted

As soon as an approved bid is presented, the debtor shall begin the mortgage confirmation period. Banks will audit your finances, and any major transactions would impact your certification status. Then lay off your credit cards and do not plan to leave your job immediately.

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Real Estate Broker: Tips to save for a first time down payment.

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Saving for a Down Payment

Getting a mortgage is one thing, but part of the home buying process is saving for a down payment. A down payment is usually 5 to 10 per-cent of the cost of the home, meaning that they can be, in some cases $10,000 that comes straight from the bank account. For many people, a down payment is the reason that they keep renting, as it is hard to save up that kind of money. Here are some tips, from a leading mortgage broker, Ryan Michell.

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  1. You Must Prioritize

Saving for something important, like a home, is all about priorities. Do you go out to eat all the time, take expensive vacations, buy all the latest stuff and drive brand new cars? Are you willing to tighten your belt and save for a house? It is up to you, which is more important? If saving for a home is one of your top priorities, then try to identify other areas where you can cut back so that you can put more money into your savings. The best way to identify areas to cut back in is to do a budget. If you haven’t put together a budget yet, that is probably the best place to start.

  1. Pay Off Your Credit Card Debts First.

You can’t really save money if you are paying a lot of interest to someone else. The first thing you should do is pay off all your debts. Start with your smallest high-interest debt, and pay it off. Then take the minimum payment from that debt and use it to help you pay off the next small debt that has the highest interest rate. Once you have that one paid off, the two minimum payments that you used to pay for those small debts can help you pay off your next debt faster. If you try to apply for a mortgage with too much consumer debt, you won’t qualify. For most people to qualify for the house they want, they usually have to pay down their credit card debts first.

  1. Look for Cheaper Ways to Do Things

This is how the smartest people save money. They make a lifestyle of finding cheaper ways to do things without diminishing their fun. Some of the best examples are:

  1. Do you buy a lot of new books? There are zillions of books that you can borrow for free, from the library.
  2. Do you go out to lots of movies? Try renting or Netflixin’. A lot of people are dropping their cable to just have streaming services.
  3. Do you dine out a lot? Try going out less, and spending the time that you would usually be in a crowded, loud restaurant to try a new recipe at home. It saves money, and provides a quiet time to spend with your loved one.Mortgage Regina

  4. See if Your City Has A First Time Homebuyers Program

From time to time, some cities have programs where they provide new home buyers with part of their down payment for their first home as an interest-free loan. Programs like this are usually initiated for two main purposes: to make it easier for first-time homebuyers to afford a home in an expensive city, and to redevelop part of the city that is struggling. These programs usually have very specific requirements. You can check with your city hall to see if your city has a program like this, Regina has done it in the past.

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Mortgage broker : A rebound is expected from housing market

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Mortgage rates: Where to Start?

Maybe it is because we were one of the first provinces in Canada to reduce the social distancing measure, but the housing market in Saskatchewan is showing great signs of improvement. In fact, we have observed a rebound of 80% since the lowest point of the COVID crisis. Robert Hogue, an RBC senior economist, has said that Regina has one of the strongest rebounds in all of the RBC tracked markets. This being said, it might be a good time for you to consult your mortgage expert. 

What happened To The Housing Market?

When the COVID outbreak happened a couple of months ago, the housing market in Canada had to face a lot of problems. The number of sales compared to other years was down 14% (compared to the month of May last year). There were 20% fewer new listings and the average price of those listings was down almost 6%. 

Even with such negative numbers, there is still hope when it comes to mortgages. The recession that was caused by the COVID pandemic has created a recession in which Saskatchewan is performing quite well and it is continuing to improve as more and more of the province are starting to re-open. 

What was, only a couple of months ago, a terrifying situation for homeowners in Saskatchewans has turned into new opportunities. The number of sales and the prices are starting to go back to where they were in April (before the crisis). This improvement will help a lot of people who own mortgages to reduce their level of stress towards the pandemic effect on the value of their homes. 

 

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What’s Going To Happen?

A lot of what is to come is unknown for now because this is the first pandemic of this importance worldwide. A big reason that drove the prices of the housing market down was that there was more inventory than there was demand because people did not want to buy houses during the pandemic due to loss of employment or economical instability. 

What we are observing now is a rise in the housing demand and a lot more people are consulting their experts in mortgage to see what opportunities were created during the pandemic. With more people buying houses and the economy returning slowly to what it was, the housing market is expected to not only stabilize but also go back to what it was.

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Contact Me For Your Mortgage Broker Needs

If you are looking for a new home in this market of opportunity, you should give me a call to see what can be done about your new mortgage. I am always staying ahead of the curve to make sure that you get the best deal for your mortgage. Give me a call today to see what kind of house you are able to afford in this unique situation that will slowly but surely go back to normal.  

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When, and When Not, to Refinance Your Mortgage

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When is a Good Time to Refinance Your Mortgage?

Refinancing a mortgage means paying off your existing loan and replacing it with a new one. There are many reasons why homeowners refinance, to obtain a lower interest rate, to shorten the term of their mortgage, to convert from an adjustable-rate mortgage to a fixed-rate mortgage, or vice versa, to tap into home equity to raise funds to deal with a financial emergency, finance a large purchase, or consolidate debt. Since refinancing can cost between 2% and 5% of a loan’s principal and, as with an original mortgage, requires an appraisal, title search, and application fees, it is important for a homeowner to determine whether refinancing is a wise financial decision. While speaking with a mortgage broker, like Ryan Michell, is always the best choice, here are a few ways to decide if refinancing is the best choice for you.

Refinancing to Secure a Lower Interest Rate

One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance. Reducing your interest rate not only helps save money, but it also increases the rate at which you build equity in your home, and it can decrease the size of your monthly payment. For example, a 30 year fixed rate mortgage with an interest rate of 5.5% on a $100,000 home has a principal and interest payment of $568. That same loan at 4.1% reduces your payment to $483.
Refinancing to Shorten the Loan’s Term
When interest rates fall, homeowners sometimes have the opportunity to refinance an existing loan that, without much change in the monthly payment, has a significantly shorter term. For a 30 year fixed rate mortgage on the same $100,000 home, refinancing from 9% to 5.5$ can cut the term in half to 15 years with only a slight change in the monthly payment. The payments change depending on the rate etc., so doing the math and seeing what works is best to do beforehand.

Refinancing to Tap Equity or Consolidate Debt

While the previously mentioned reasons to refinance are all financially sound, mortgage refinancing can be a slippery slope to never-ending debt. Homeowners often access the equity in their homes to cover major expenses, such as the costs of home remodelling or a child’s college education. These homeowners may justify the refinancing by the fact that remodelling adds value to the home or that the interest rate on the mortgage loan is less than the rate on money borrowed from another source. Many homeowners refinance to consolidate their debt. At face value, replacing high-interest debt with a low-interest mortgage is a good idea. Unfortunately, refinancing does not bring automatic financial prudence. Take this step only if you are convinced you can resist the temptation to spend once the refinancing relieves you from debt.

Ryan Michell
Overall, the best way to determine if refinancing is best for you, is to speak with an expert. Ryan Michell is a mortgage broker who is an expert in refinancing mortgages and can work with you to ensure you make the right decisions.