Mistake #1 - Not knowing what they can afford before making an offer.

The best way to avoid this is to get pre-approved for a mortgage so you know exactly how much you can afford. Usually pre-approvals are free.

Mistake #2 - Not knowing who the agent represents.

Unless an agent is working as your buyer representative, they represent the seller. Many people don't realize this.

Mistake #3 - Choosing the wrong mortgage.

A bad mortgage can cost you thousands in taxes and interest. Consult an accountant before you choose your mortgage.

Mistake #4 - Not finding problems with the home before buying it.

You should always have a professional inspector look at the home before buying it, otherwise you could be looking at huge repair costs later on. Read this guide to avoiding a money pit.

Mistake #5 - Not understanding how their credit can impact their ability to purchase or refinance a home.

Get a mortgage professional to help you go over and prepare your credit file before you buy a home.

Many people think that serious defects in a home are easy to spot, but the truth is, often the most serious and costly problems can only be detected upon very close inspection. When you are considering buying a home, look for the following six telltale signs of serious problems...

1. Roof

Leaks are the most common problem with roofs, and are tough to detect from outside. However, from inside an attic, you can often see water marks where there is a leak.

2. Plumbing System

Make sure you are confident that both water systems: the one that brings fresh water in and the one that takes sewage out are functioning well before signing on the dotted line.

3. Electrical Systems

Before you agree to buy you should make sure that you can run all of the appliances you want to and even power tools at the same time without having a power failure. You also want to make sure that the electrical system is safe and does not present a fire hazard.

4. Heating and Cooling Systems

Be sure to thoroughly inspect the heating and air conditioning systems in any home you are considering purchasing.

5. Bad Paint and Signs of Rotting

The paint inside and outside the house can reveal a lot about the condition of the underlying material. Check several places on several walls, using your eyes and a screwdriver for poking.

6. Cracks and other important signs

Cracks in walls, doors not closing properly and uneven floors can all be signs that there is a problem with the foundation. If the foundation is not strong, the entire house could literally collapse, so you should carefully check for these signs. A bad foundation may not mean imminent disaster, but it could be used to bargain for a lower sale price, or you could ask to have the owner repair it before the sale.

There are a few easy ways to make extra principle payments that can save you a ton of money in interest expenses and get you mortgage-free sooner than you thought possible. Here are a few simple strategies you can use:

1. ROUND YOUR MONTHLY PAYMENT UP

The results of this simple strategy can save you a fortune and drastically reduce the length of your mortgage.

As an example, if your monthly mortgage payments were $734 dollars a month, but you rounded it up to $800 per month, you would save more than $48,000 in interest payments, and reduce the length of your mortgage by 7.5 years!

2. MAKE ONE TIME PRE-PAYMENTS USING YOUR INCOME TAX REFUND

This is an easy way to save money and shorten your mortgage. For example, if you have a $100,000 mortgage, and you have a $1000 tax refund this year, you take apply that refund to your mortgage. Over time, this will save you more than $8600 and shave 1 year and 1 month off your mortgage! That's another amazing result from a simple strategy.

3. CHOOSE A 15 YEAR MORTGAGE

If you can afford it, you are far better off getting a 15 year mortgage instead of 30. It won't cost you much more, and the interest savings are truly incredible.

If you have a mortgage of $100,000 at 8% interest over 15 years, your monthly payment would be about $200 more, but you'd end up saving $92,083 in interest over the life of your mortgage!

Using these strategies is the easiest way to reduce your interest expenses and shorten your mortgage period.

YOUR CREDIT SCORE IS NOW THE MOST IMPORTANT FACTOR IN DETERMINING HOW MUCH HOUSE YOU CAN BUY, SO IF YOU ARE IN THE MARKET FOR A NEW HOME, YOU NEED TO UNDERSTAND HOW IT AFFECTS YOU.

In order to make it easy for mortgage companies to determine the risk of lending to you, they are using a system called credit scoring (also called "FICO" scores).

When lenders look at your credit report, they can instantly see how much debt you have, how reliable you are with bill payments, and if you've had any bankruptcies within the last several years.

With your credit report, lenders get a "credit score" which takes all of this information and boils it down to a number between 300 and 900. The higher the number, the less of a credit risk you are seen to be, and this is how lenders decide which types of loans you will be eligible for.

As with all new things, there is controversy over credit scores.

To be elligible for some types of loans, you require a minimum credit score without any exceptions. And credit scores fluctuate over time. In fact, the mere act of applying for credit can lower your credit score.

HOW TO MAKE SURE YOU HAVE THE HIGHEST CREDIT SCORE POSSIBLE

To maximize your credit score, you should avoid applying for any new credit cards or consumer loans.

Don't go to the discount store and take them up on the "No interest, no payments for one year" offer -- and avoid financing a car!

After you buy your home and get your mortgage you can do all of these things, but before then it's a bad idea. Buying things on credit hurts your credit score, and leaves less money for your downpayment.

Lenders also look at this figure to decide how much money they will lend you, and how much interest they will charge you on the loan.

That's why it's best to wait until after you've bought your home to go shopping for furniture and appliances. There is also another reason to wait.

Once you've bought your home, you can get a loan for up to 100% of your home's value to buy anything you want.

If you learn to play by the rules of the lenders' game, you can get the best credit score possible, which improves the odds that you can get the home of your dreams.

Imagine this scenario...

You purchase a new home and move in. A few weeks later, you hear a strange rumbling sound. It’s the furnace. It’s only a year old, yet it’s sputtering like it’s twenty. You realize you’ll have to call in an HVAC contractor to get it fixed.

You’re thinking, “Ouch! This is going to be expensive.”

Well, maybe not. You see, since that furnace is relatively new, it might be covered by its original warranty — even for you, the new owner.

But a warranty is useless if you don’t know it exists.

Recent studies suggest that upwards of 50% of people pay to get items fixed that were actually covered by a warranty. So, when purchasing a new home, be sure to ask this simple question: “What warranties do you have for items, materials or workmanship in this house?”

Warranties are common on new stoves, fridges, washers, dryers and other big ticket appliances. Some such warranties are transferrable, which means they are still in force when the items pass from one owner to another.

Even less expensive items, such as electronic thermostats and automatic garage door openers, may be covered by a transferrable manufacturer’s warranty.

If the home you’re purchasing is relatively new (say, less than 10 years old), the builder’s warranty may also still be in force. That can be handy if a structural problem arises.

Even recent renovations, may have come with a labour and/or installation warranty of some kind.
As you can see, warranties are everywhere! The more you’re aware of them, the more you’ll save when something needs repair or replacement.

Imagine there’s a neighbourhood you’d love to live in someday, but, every time you drive through, you rarely, if ever, see a For Sale sign. It’s as if homes get gobbled up by buyers the moment they get listed.
 
It’s true, properties do tend to sell quickly in desirable, in-demand neighbourhoods. Does that mean you’re destined to either hope for a lucky break or miss out on ever living there?
 
Fortunately, no. There are practical things you can do to increase your chances of getting into that neighbourhood.
 
Your first step is to find out the kind of new home you can afford. You want to get your financial ducks in a row so when a listing does come up in the area, you’re able to respond quickly. Find out the average price range of homes in the neighbourhood. Then, if necessary, talk to your lender or mortgage broker.
 
The second step is to get your current property ready for sale. You don’t necessary need to list it now, but you want to be in a position to do so quickly, if necessary. You may need to clean up and declutter, get repairs done, and spruce up your home in other ways.
 
The third step is to talk to me.
 
You see, listings in popular neighbourhoods often move fast. By the time you see them advertised on the internet, they may be gone. I can closely monitor listings in that area for you, so the moment one comes up that meets your criteria, you can be alerted. This greatly increases your chances of getting that home.
 
So if there is a dream neighbourhood you’d love to get into, give me a call. 

Imagine buying a product from a store, taking it home, and then discovering there’s a problem with it. Disappointing, yes, but not a catastrophe. You can simply take it back for repair or exchange.
 
But, what if it’s moving day, and you discover there’s a problem with your new home? Whoa. A house isn’t so easily returned!
 
What are the most common problems encountered on moving day?

• A delay in getting the keys.
• The seller not having completely moved out.
• An item expected to be included with the property is missing. (For example, the window blinds.)
• Something needs repair that was not disclosed by the seller, nor did it come up during inspection. (For example, the dishwasher not working.)
• Damage to the property caused by the seller. (For example, a heavy item dropped during the move and cracking a floor tile.)

Fortunately, these are rare events. In most cases, you can expect no serious issues when you move into your new home.
 
But, if something is wrong, you have options. So, call me immediately. In all likelihood, I will be able to quickly resolve the issue.
 
If it’s a serious matter, such as missing items, I may get your real estate lawyer involved to arrange for the return of the item(s) or compensation.
 
So don’t worry. Let the professionals handle it. You can just enjoy your new home!

Imagine finding the perfect home, only to discover there is serious interest from at least a dozen other buyers. It’s like scrambling for the last piece of cake at a buffet!

Fortunately, there are things you can do to help get the home you want, even in a highly competitive market. Here are just a few ideas:

• Only view a few ideal properties at a time. If you see too many, and thus spread yourself too thin, you risk homes slipping through your fingers.

• Be realistic about price. Focus on finding a great home that you can afford, rather than trying to find a bargain.

• Consider homes that need some work. They get less interest than perfectly staged properties, yet can turn out to be a dream home.

• Be prepared to make an offer with as few conditions as possible. An offer conditional on passing inspection is usually fine, but in a competitive situation, offers with other conditions will likely be turned down flat.

• Make your decisions quickly. If there are likely to be other interested buyers, you want to get your offer in early.

• Make the right offer. To win the deal, you want your offer to be as enticing as possible to the seller — especially when it comes to price.

Yes, it can be tough finding an ideal home in a hot market, but I can help. Give me a call and I’ll show you how.