If you have decided to buy a home your first step should be to get pre-approved by a lender. There are a few good reasons for this. Interest rates change. Once you are pre-approved, lenders will hold your rate for up to 120 days. If rates goe down during this period, you will get the lower rate. If rates go up, you will still get the lower quoted rate. As well, when you are pre-approved for a mortgage you know exactly how much you can afford to spend on a home. That way, you will not everextend yourself. Before you get pre-approved feel free to contact me. By understanding your unique financial situation, I will be able to determine if you are better off dealing with a big five lender or your situation requires the expertise of a creative mortgage broker, who has access to a pool of lenders. I have many good connections with bankers and mortgage brokers and can refer you to the right person from the start, putting you on the right track.
A foreclosure results when a borrower defaults on mortgage payments. The sale of the property is to satisfy the payment of the loan. In Alberta, foreclosures are processed under judicial sale but the court ordered sale is carried out under the Court of Queen's Bench. A judicial sale is when the lender has the property listed for sale under the supervision of the court. If there are no offers from the judicial sale, the lender can seek an order of absolute foreclosure, thereby becoming the new owner. The foreclosure process is complicated and in many cases your ability to secure a good price will depend on what stage the process is at. It will also depend on your ability to recruit the services of a good realtor, whose expertise can guide you smoothly through the process.
Some upsides include a price below market value, no fear of upsetting the vendor with a low-ball offer, and a quick possession as in many cases foreclosures are vacant. Possible downsides include the following: Many foreclosures require no condtion offers, so you cannot write subject to financing. The property is sold in as is where is condition. There are no warranties or representations made by the vendor and in many cases you do not get a survey (Real Property Report) with the property. Many foreclosures generate multiple offers and in some cases end up selling higher than fair market value. There are other safer deals on the market and sometimes they come in the form of estate, or distress sales. CLICK HERE, fill in your contact info and search criteria and my special software will go to work, sending you hot new listings the minute they come on the market. Or, click SEARCH PROPERTIES above, MLS SEARCH and begin conducting your own search of the MLS data base. For more information on foreclosures, please visit BLOG.
Alberta is the only province in Canada where provincial legislation dictates that a person can assume a mortgage without qualifying. However, recently lenders have changed mortgage documents so the lender can ask for qualification to assume. This has changed the complexion of the non-qualifying assumable game. While non-qualifying assumables still exist, it is currently like trying to find a needle in a haystack. Having said this, I have many years experience in the search for assumables, so I may be able to help you. If I can't help you with an assumable I may be able to find you a rent-to-own deal, vendor financing, or perhaps introduce you to a creative mortgage broker who can actually get you qualified for a mortgage, or put you on the road to rebuilding your credit. For more information on assumables, please visit BLOG.
Recruting the services of a good buyer's agent is one of the most important decisions you will ever make concerning your real estate investment. There are a number of advantages to aligning yourself with my team. My services are free. The fee I receive when I help you find the right property is paid for by the seller. And I'm not out to sell you a house. My job is educate you on real estate value, act as your negotiator, and make sure you find a great deal and do not overpay. Some other benefits include up to 30 per cent off furniture and appliances at the Brick, and access to my finely tuned list of renovators, accountants, lawyers, and home inspectors offering excellent sevices at competitive prices. Feel free to contact me to learn more about my Search Plan and Buying Program.
BUYING A HOME
Whether you are looking for your first home, or you are a sophisticated investor, I have an ongoing search of distressed properties. Once I determine your search criteria, I enter it into my special software and my computer goes to work, automatically tracking the market and keeping you up to date on hot new listings the minute they come on the market. I even preview properties for you, weeding out the bad ones. As a buyer's agent, I negotiate strictly on your behalf and do not have a relationship with the seller. I protect your interests every step of the way, insuring you get the best deal possible. If you would like me to go to work tracking the market for you simply click Buying and Property Finder above, fill out your information, and I will begin sending you listings immediately. This is a free service and obligates you to nothing. I have access to any available property regardless of the listing company.
TEN OF THE MOST COMMON BUYING MISTAKES
NOT GETTING PRE-APPROVED. The seller will be a lot more comfortable accepting your offer if they know you are pre-approved. In some cases, they even demand a letter of pre-approval. It will also help you at the deal table when it comes to price. NOT USING A QUALIFIED PROFESSIONAL. I have talked to many buyers sho decided to go the for sale by owner route and ending up paying too much or getting involved in a messy contract that resulted in litigation. FAILING TO HAVE A PLAN. It isn't that likely to find a home that offers everything you desire. But, without a list it will be difficult to spot a home that meets most of your expectations. THINKING " I CAN'T AFFORD A HOME. Lots of people say they can't afford a home. But, with mortgage interest rates at historic lows, the timing has never been better to look at buying. CHOOSING A MORTGAGE BASED ONLY ON INTEREST RATE. It's a myth that a fixed rate mortgage at today's interest rate is the best option available. Depending on your risk tolerance, you may be better off with a variable rate mortgage. TIMING THE MARKET. This is not always wise. Although prices may and do drop, mortgage interest rates also go up and your personal financial situation may change as well. NOT BUYING. If you can afford a home and decide not to buy you will lose out on equity appreciation, principal reduction on your mortgage and the many tax advantages of owning. LOW BALLING. Sometimes uneducated buyers offer to little and end up alienating the seller and paying more for the home than if they offered something more reasonable. Leave it to your realtor to determine seller motivation and advise you during the offer stage. BAD FLOORPLAN. Don't overlook a bad floorplan as this could severely affect resale. CHOOSING A BAD LOCATION. Location matters. Check proximity to amenities, resale in neighbourhood, busy streets, etc.
To assist you in your home hunting, I've prepared the following guides that detail some of the subtleties and issues relating to buying in the Calgary real estate market. You’ll need to become a VIP to access the guides below. If you have any questions feel free to contact me. I look forward to working with you and forging a long-lasting, loyal and mutually beneficial relationship.