Mortgage?

A mortgage represents a loan or lien on a property/house that has to be paid over a specified period of time. Think of it as your personal guarantee that you'll repay the money you've borrowed to buy your home. Mortgages come in many different shapes and sizes, each with its own advantages and disadvantages. Make sure you select the mortgage that is right for you, your future plans, and your financial picture.
What is an amortization schedule?

The month-by-month allocation of your monthly payment to the loan's interest and principal is called an amortization schedule. With most loans you pay off the interest on the loan before you pay off the principal (or the actual amount you borrowed). Your lender will provide an amortization schedule to show you how the percentage of your principal paid off increases with every payment, while the percentage of interest decreases.

Choosing the right mortgage.

Once you decide on the mortgage you want, do your homework. Different lenders offer different rates, points, and fees. Ask around and compare.

Understanding the benefits of different mortgage offerings can be a complex process.

Posted by David Shieh- Abbotsford Real Estate Agent Landmark Realty Corp.

Negotiating A Sales Price

Before you negotiate a sales price, it's important to determine if you or the seller has the stronger position. Knowing this will help you plan your negotiation.

The seller may have the stronger position if:

* The local real estate market is strong and homes are selling quickly.
* They aren't in a rush to move.
* Similar houses have sold for close to or above their asking price.

The buyer may have the stronger position if:

* The local real estate market is weak.
* The seller needs to move quickly.
* The house has been on the market for a long time.

When negotiating, more information is better. Look at your notes from when you looked at the house. If there's anything in need of repair or replacement, you may include these costs in the negotiation. If you want certain appliances or fixtures to stay, be sure to include them in the negotiation. You may also want to make your offer contingent upon your obtaining financing or the house passing a professional home inspection, especially if it is an older home.

There are several steps to negotiating:

* Asking price.
This is the price the sellers have originally listed. Except in extremely strong real estate markets, most sellers don't expect to get an offer at or above the asking price.
* Initial purchase offer.
This is your first offer. It may include contingencies (such as a requirement that the home pass a professional inspection or that you receive adequate financing from your lender.)
* Acceptance of offer or counter-offer.
The seller can accept your offer or make a counter-offer of a new price or additional contingencies.

If you've made a home inspection part of the contingencies and something serious is found during the inspection, you may want to submit a new counter-offer and discuss the situation with your lender. The process may go back and forth several times before you and the seller reach an offer that is acceptable to you both. Remember that in some instances, your lender may not approve your mortgage if the home has serious deficiencies that could affect its value.

* Escalation clauses.
If you live in a market where homes are selling quickly and have multiple offers, your contract may need to be offered with something called an escalator clause, which allows the offer to increase by certain dollar increments if more than the offer is obtained and entertained by the seller.
Source: Freddie Mac

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Post by David Shieh Abbotsford Real Estate Agent
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Things to Consider Before Buying a Home

You are about to invest in your most valuable asset. Many home buying steps are standard yet there might be slight variations depending on the real estate laws and regulations where you live. Here are our top ten recommendations to make you more confident as you embark on your home buying journey.

1. YOUR CREDIT RATING
Getting your finances in order is probably the most important step you should take. Your credit reports are an ongoing look at how you manage your finances. You must know exactly what your credit reports say about your financial history before you apply for a mortgage, because the reports play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you.

2. UNDERSTANDING HOW MORTGAGE WORKS
Get familiar with the mortgage laws, structure and options. That way, you will be able to decide on the right loan and lender - crucial to your home buying success. It's up to you to determine which lender is best for your needs, and it's always a good idea to have at least a bit of background about the loan process before you talk to a lender.

3. GETTING A MORTGAGE PRE-APPROVAL
Do you know how much house you can afford? Probably not, unless you've talked with a lender. Pre-approval helps you in other ways. Consider this scenario. A home seller gets two similar offers. One is accompanied by a letter from the buyer's bank that states she is pre-approved for a mortgage in the amount of the offer. The other has no supporting documents. Which offer do you think the seller will consider first?

4. SORTING OUR YOUR NEEDS AND YOUR WANTS
Buying a home isn't as difficult as you might think, even if you're short on funds. But the process will go a lot smoother if you get familiar with your real estate market and narrow down your wants and needs before you start looking at houses.

5. PREPARING TO WORK WITH REAL ESTATE AGENTS
Real estate agents represent buyers, sellers, or both for they can work as neutral facilitators for either party. It's essential to understand agent duties and loyalties before you make that first phone call.

6. THE GREAT HOME SEARCH
The Internet is a great tool - you can spend endless hours searching public version of Multiple Listing Service websites. Besides, your agent too will give you multiple listing sheets to study. You can also pick up House For Sale magazines and read classified ads in your local newspapers. You might even plan afternoon drives to preview neighbourhoods. These are all excellent ways to see what's available out there.

7. PRE-OFFER INVESTIGATION
Deciding whether or not you want to buy a house involves a look at its structure and its features, but there are many other topics that are every bit as important to your purchase. Appoint a professional to conduct the home inspection. Study what kind of house is it - site built, modular or manufactured. Consider its market value and resale potential. Do others have a right to use the property? Can you live with the deed restrictions? Is the reported square footage accurate? Is the heating system efficient? And so on.

8. MAKING THE OFFER
There's no one set of instructions that can cover all the differences in real estate laws and customs that exist throughout, so the mechanics of making an offer and its specific contingencies depend greatly on your location. That's why you should sit with your agent, attorney or advisor to fine-tune your offer and take care of all the contractual considerations.

9. AVOIDING LAST MINUTE CHANGES
As your closing date nears, everyone involved in your real estate transaction should check its progress on a daily basis, because staying on top of things means you'll know immediately if there's a problem that must be dealt with. Here's a bit of information that focuses on a few common problems that home buyers must deal with before they close on a house.

10. BEFORE CLOSING
Most of your home buying concerns are behind you now and you're on your way to closing the event that transfers ownership of the property to you. You will encounter issues specific to your location and your transaction, issues that can best be explained and handled by your local real estate agent, your lender, your attorney, your closing agent, or others who are helping you complete the home buying transaction.

Never hesitate to ask questions. Ask as many questions as necessary to help you understand the entire home buying process. You are making a long term commitment and spending a major amount of money--you'll feel much better about the transaction if you stay informed and understand what's happening every step along the way.
Source: HGTV.ca

Posted by David Shieh- Abbotsford Real Estate Agent Landmark Realty Corp.
You are about to invest in your most valuable asset. Many home buying steps are standard yet there might be slight variations depending on the real estate laws and regulations where you live. Here are our top ten recommendations to make you more confident as you embark on your home buying journey.

1. YOUR CREDIT RATING
Getting your finances in order is probably the most important step you should take. Your credit reports are an ongoing look at how you manage your finances. You must know exactly what your credit reports say about your financial history before you apply for a mortgage, because the reports play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you.

2. UNDERSTANDING HOW MORTGAGE WORKS
Get familiar with the mortgage laws, structure and options. That way, you will be able to decide on the right loan and lender - crucial to your home buying success. It's up to you to determine which lender is best for your needs, and it's always a good idea to have at least a bit of background about the loan process before you talk to a lender.

3. GETTING A MORTGAGE PRE-APPROVAL
Do you know how much house you can afford? Probably not, unless you've talked with a lender. Pre-approval helps you in other ways. Consider this scenario. A home seller gets two similar offers. One is accompanied by a letter from the buyer's bank that states she is pre-approved for a mortgage in the amount of the offer. The other has no supporting documents. Which offer do you think the seller will consider first?

4. SORTING OUR YOUR NEEDS AND YOUR WANTS
Buying a home isn't as difficult as you might think, even if you're short on funds. But the process will go a lot smoother if you get familiar with your real estate market and narrow down your wants and needs before you start looking at houses.

5. PREPARING TO WORK WITH REAL ESTATE AGENTS
Real estate agents represent buyers, sellers, or both for they can work as neutral facilitators for either party. It's essential to understand agent duties and loyalties before you make that first phone call.

6. THE GREAT HOME SEARCH
The Internet is a great tool - you can spend endless hours searching public version of Multiple Listing Service websites. Besides, your agent too will give you multiple listing sheets to study. You can also pick up House For Sale magazines and read classified ads in your local newspapers. You might even plan afternoon drives to preview neighbourhoods. These are all excellent ways to see what's available out there.

7. PRE-OFFER INVESTIGATION
Deciding whether or not you want to buy a house involves a look at its structure and its features, but there are many other topics that are every bit as important to your purchase. Appoint a professional to conduct the home inspection. Study what kind of house is it - site built, modular or manufactured. Consider its market value and resale potential. Do others have a right to use the property? Can you live with the deed restrictions? Is the reported square footage accurate? Is the heating system efficient? And so on.

8. MAKING THE OFFER
There's no one set of instructions that can cover all the differences in real estate laws and customs that exist throughout, so the mechanics of making an offer and its specific contingencies depend greatly on your location. That's why you should sit with your agent, attorney or advisor to fine-tune your offer and take care of all the contractual considerations.

9. AVOIDING LAST MINUTE CHANGES
As your closing date nears, everyone involved in your real estate transaction should check its progress on a daily basis, because staying on top of things means you'll know immediately if there's a problem that must be dealt with. Here's a bit of information that focuses on a few common problems that home buyers must deal with before they close on a house.

10. BEFORE CLOSING
Most of your home buying concerns are behind you now and you're on your way to closing the event that transfers ownership of the property to you. You will encounter issues specific to your location and your transaction, issues that can best be explained and handled by your local real estate agent, your lender, your attorney, your closing agent, or others who are helping you complete the home buying transaction.

Never hesitate to ask questions. Ask as many questions as necessary to help you understand the entire home buying process. You are making a long term commitment and spending a major amount of money--you'll feel much better about the transaction if you stay informed and understand what's happening every step along the way.
Source: HGTV.ca

Posted by David Shieh- Abbotsford Real Estate Agent Landmark Realty Corp.

Mortgage Information

A few changes to report on the rate front…current rate sheet attached. Best 5 year fixed term is now sitting at 5.99% and our best 5 year Variable Rate mortgage is sitting at Prime minus .60%, which today is 5.65%. Bond yields in the market have been on a steady decline for over a week now which should mean some interest rate decreases in the near future

Posted by David Shieh- Abbotsford Real Estate Agent

How much home can you truly afford?

A general rule of thumb is to multiply your gross annual income by 2.2 to arrive at the home’s approximate price level. For instance, if a married couple gross a total of $80,000 annually, they can probably afford a home priced at $176,000 (rew.ca).
The second affordability rule is that your entire monthly debt load shouldn’t be more than 40 per cent of your gross monthly income. This includes housing costs and other debts such as car loans and credit card payments. Lenders add up these debts to determine what percentage they are of your gross monthly income. This figure is your Total Debt Service (TDS) ratio(rew.ca).
It helps to keep in mind that, in the long run, home owning has been traditionally a much better investment than renting. And when you finally sell, the capital gain on your Canadian private residence is tax free(rew.ca).
Posted by David Shieh- Abbotsford Real Estate Agent

Upgrade your kitchen without remodelling

If you are planning to sell your home, you can present your kitchen as an organized, clutter-free, versatile space that will make it easy for buyers to envision being productive and happy working in the heart of their new home.

Want to give your kitchen some pizzazz without blowing a fortune? Here are some easy, low-cost changes that can instantly upgrade your kitchen, without major remodeling.

1. Replace your kitchen faucet with an updated model.

2. Change the face of your cabinet. If you have solid wood cabinets, strip the colour or finish. Then apply a new stain with a couple of drops (or squeezes!) of yellow or green oil pigment (available at your local craft store) added. The colour will have more depth and more drama.

3. Replace or paint ugly laminate countertops. (Use Marine-grade paint.)

4. Add warmth during cold seasons with a gorgeous rug next to the sink counter.

5. Try adding beadboard as a backsplash for a traditional or country kitchen. Be sure to cover with a quality paint that can be scrubbed!

6. Want a Tuscan look? Mount terracotta or stone pavers as a backsplash. Apply matching or contrasting mortar to customize the look.

7. For an even more inexpensive look, use vinyl floor tiles in a stone or mosaic pattern as a backsplash. There are some wonderful vinyl tiles available today.

8. For a plantation look, replace your conventional doors with window shutters.

9. Add colour to plain white cabinets with art! Ask your children to paint flowers or scenes on white paper. Then mount the paintings in small painted frames and attach two or three (depending on the proportions of your cabinets) to the front of each door. (And you can change the paintings anytime you want!)

10. Invest in an attractive portable kitchen island to use as a prop for a kitchen with an open center and insufficient counter space.

Voila! A dramatic makeover in your kitchen takes just a few inexpensive touches!

Of course, if you have the budget, you can go all-out for improved efficiency, better storage, premium presentation and a great fresh look.

Two no-fail suggestions:

1. Replace outdated appliances with newer models to save both space and energy.

2. Refresh the kitchen with a neutral, two-toned colour scheme to make the space seem larger

Money spent updating your kitchen rewards you better than money spent on any other upgrades to your home. When it comes to kitchens, buyers continue to demand improvement in efficiency and style, and they love remodeled kitchens and new appliances.

Provided by HGTV.ca

Posted by David Shieh- Abbotsford Real Estate Agent

Location ,Location, Location

Where's the best place to live? It depends on what's important to you. Location is of paramount concern for most people when choosing a new home. That's why it's crucial to have accurate facts and specifics about new communities so you can make an informed decision. Fortunately, there are several valuable sources you can use to gather information about the places you're considering. The internet is an excellent starting place to research possible new homes.

Where you choose to live is a highly subjective decision, based on many individual variables. So, what important factors should you take into consideration before you decide to pack all your worldly belongings and head for your new home? Here are some important elements to consider as you begin your search.

Schooling
Having vital information about local schools in your new community is a primary concern among parents. Again, the Internet has a wealth of resources to find out detailed information about the various schools in the areas you are considering.

Crime-rate
Feeling safe and secure in your new home is a primary consideration when choosing where to live.

Health care access
Quick access to quality health care and corresponding coverage areas are top-of-mind concerns when deciding on a home. You'll want to know beforehand how close your new home is to the nearest hospital or urgent care facility, especially if a member of your family has an existing chronic medical condition. Web sites for your specific health insurance carrier provide a comprehensive, up-to-date source for this information.

Cost of living factors
You've been offered a 30 percent raise in your new job in a city 500 miles away. That's great news--or is it? Before you decide to upgrade your kitchen to get a better selling price and break out the packing boxes, it's a good idea to see just how far your increased salary will go in that new location. Fortunately, the internet is an excellent resource to instantly compare cost of living between cities.

Homeownership rates
High homeownership rates point to a population that has a vested interest in maintaining the living standards of an area.

College-educated residents
The number of college-educated residents is indicative that the residents value the importance of higher education. This translates into educated parents who are inclined to be active participants in promoting good local schooling.

The weather
Weather patterns are an important consideration, since they can profoundly affect your physical and mental health. Look up climate averages at popular weather websites.

Forewarned is forearmed
Deciding where to live requires in-depth, up-to-date information which can help you analyze a variety of quality of life issues. While different sources may produce different results, it's a good idea to check them all out and get a comprehensive overview of what's considered to be a 'Best place to live'. Make sure you use all of the resources you have at your disposal. Knowledge is power.
Source: HGTV.ca

Posted by David Shieh- Abbotsford Real Estate Agent Landmark Realty Corp.