Thinking about purchasing a home of your own? Keep these critical considerations in mind:
How long you plan to live in the home.
 The length of time that it will take to cover your purchase costs depends on various economic factors in the area of the home. Most parts of the country have an average of 5% appreciation per year. In this case, you should plan to stay in your home at least 3-4 years to cover buying and selling costs. If the area you buy your home in experiences an economic up turn, the length of the time to cover these costs could be shortened, and the opposite is also true.
How long the home will meet your needs.
What features do you require in a home to satisfy your lifestyle now? Five years from now? Depending on how long you plan to stay in your home, you'll need to ensure that the home has the amenities that you'll need. For example, a two-bedroom dwelling may be perfect for a young couple with no children. However, if they start a family, they could quickly outgrow the space. Therefore, they should consider a home with room to grow. Could the basement be turned into a den and extra bedrooms? Could the attic be turned into a master suite? Having an idea of what you'll need will help you find a home that will satisfy you for years to come.
Your financial health - your credit and home affordability.
Is now the right time financially for you to buy a home? Would you rate your financial picture as healthy? Is your credit good? Generally, a couple of blemishes will not hurt you. We at Envelope have great lenders who know how to put a deal together regardless of your credit score.
Some say that you should refrain from borrowing as much as you qualify for because it is wiser not to stretch your financial boundaries. The other school of thought says you should stretch to buy as much home as you can afford, because with regular pay raises and increased earning potential, the big payment today will seem like less of a payment tomorrow. This is a decision only you can make. Are you in a position where you expect to make more money soon? Would you rather be conservative and fairly certain that you can make your payment without stretching financially? Make sure that whatever you do, it's within your comfort zone.
To determine how much home you can afford, talk to a lender or go online and use a "home affordability" calculator. Good calculators will give you a range of what you may qualify for. Then call a lender. While some may say that the "28/36" rule applies, in today's home mortgage market, lenders are making loans customized to a particular person's situation. The "28/36" rule means that your monthly housing costs can't exceed 28 percent of your income and your total debt load can't exceed 36 percent of your total monthly income. Depending on your assets, credit history, job potential and other factors, lenders can push the ratios up to 40-60% or higher. While we're not advocating you purchase a home utilizing the higher ratios, its important for you to know your options.
Where the money for the transaction will come from.
Typically homebuyers will need some money for a down payment and closing costs. However, with today's broad range of loan options, having a lot of money saved for a down payment is not always necessary - if you can prove that you are a good financial risk to a lender. If your credit isn't stellar but you have managed to save 5-10-20% for a down payment, you will still appear to be a very good financial risk to a lender.
The ongoing costs of home ownership.
Maintenance, improvements, taxes and insurance are all costs that are added to a monthly house payment.If these additional costs are a concern, you can make choices to lower or avoid these fees. Be sure to make your realtor and your lender aware of your desire to limit these costs.
Our contacts with energetic and hard working lenders can get you into your own home quicker and easier than you think. We work real hard and we expect our lenders, legal professionals and home inspectors to work hard for you too. So, why waste time and money? If you want to buy, we will get it done!
Here’s How To Get FREE Updates By Mail, Fax or email Of ALL The New Properties That Come On The Market Each Week….
“… a FREE subscription to MarketWatch gives you all the information in any price range and area you’re considering---
often before the homes are ever advertised in the paper or homes magazines.”
If you’re going to buy a home or condo in the London area in the next 6-12 months, Market Watch will be very helpful to you.
It works like this: Every other Wednesday, we have our computers make a list of all the new homes and condos that come on the market in the previous two weeks. The computer automatically sorts them by price range and area, and we mail, fax or email them to you--- so you get all the information on whatever kind of homes you’re interested in.
You won’t have to wonder where a property is when you see it in the paper, or what the price is when you drive by homes in any neighbourhood. You’ll have the same information that real estate agents have.
All you have to do to get a FREE one-year subscription is let us know what information you’d like on the form included with this letter, and either fax it to us at 519-435-0501, or call 519-435-1600, toll free 1-866-674-2111 to let us know. Or, drop us an email at info@enveloperealestate.com
Ask us about our “HOME BUYER SCHOOL”. If you are serious about saving a lot of time and money and most importantly, heartaches, then this one-hour "class" and 40-page booklet may be for you.
So if you are serious about buying a house or condo in London in the next 1-3 months, why not sign up now. This FREE course can save you thousands!
Sincerely
Ty Lacroix
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