How to Stop Paying Rent and Own Your Own Home

There are many important issues you should be aware of that affect you as a renter. Instead of continuing to lose thousands of dollars every year, take a few minutes to speak with your agent regarding your specific needs so that you can stop renting and start owning as soon as possible. 

Having the conversation costs you nothing, and you don't have to feel obligated to buy a home at the time you review this. By taking the time to explore your options, and learn about ways to afford a home, think how prepared and relaxed you'll feel when you are ready to take the  important step. 

It's a dream we all have - to own our own home and stop paying rent. But if you're like most renters, you feel trapped within the walls of a house or apartment that doesn't feel like yours. You feel stuck in the renter's rut with little way to rise out and own your own home. 

Don't Fee Trapped Anymore. 

It doesn't matter how long you've been renting, or how insurmountable your financial situation may seem. The truth is, there are some little known facts that can help you get over the hump. With this information you will begin to see how you can save for a down payment and stop wasting thousands on rent. 

6 Little Known Facts 

That Can Help You Buy Your First Home

The problem that most renters face isn't the ability to meet a monthly payment. The problem is accumulating enough capital to make a down payment. 

1. You can buy a home with much less down than you think

There are some local or federal government programs (such as 1st time buyers program) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before, as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options. 

2. You may be able to get your lender to help you with your down payment and closing costs.

Even if you do not have enough cash for a down-payment, if you are debt-free, and own an asset free and clear (such as a car for example), your lending institution may be able to lend you the down payment for your home by securing it against this asset. 

3. You may be able to find a seller to help you buy and finance your home. 

Some sellers may be willing to hold a second mortgage for you as a "seller take-back". In this case, the seller becomes your lending institution. Instead of paying this seller a lump-sum full amount of his or her home, you would pay monthly mortgage installments. 

4. You may be able to create a cash down payment without actually going into debt.

By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end. 

5. You can buy a home even if you have problems with your credit rating. 

If you can come up with more than the minimum down-payment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation. 

6. You can, and should, get preapproved for a home loan before you go looking for a home. 

Preapproval is easy, and can give you complete peace-of-mind when shopping for your home. Mortgage experts can obtain written preapproval for you at no cost and no obligation, and it can all be done quite easily over-the-phone. More than just a verbal approval from your lending institution, a written preapproval is as good as money in the bank. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you're looking for. 

Consider dealing only with a professional who specialises in mortgages. Enlisting their services can make the difference between obtaining a mortgage, and being stuck in the renter's rut forever. Typically there is no cost or obligation to enquire. 

5 Tips to buyers from a Real Estate agent

As we reflect on the first six months of 2013, we see historically low mortgage rates, that have been encouraging buyers all over the nation to invest in the selling and purchasing of property. This window of opportunity has proven to be brief, as the economy has strengthened and is recovering fully to normalcy in the near few months. Banks are once again more cautious with qualifying buyers for mortgages and the home sellers in the market will be suffering from lack of buyers. 

Still .. this is a wonderful time to buy! Mortgage rates are still much lower than what is predicted for the new year, and with the annual drop of prices after summer time, it is a fantastic time for first-time buyers, investors and existing homeowners to start the process of buying a new home. Below are tips for buyers from real estate professionals and experts. I hope you find them useful.

TIPS FOR BUYERS:

1. Location Location Location!

In order to make a great investment, location is extremely important in the growth potential of your property. Consider geographical amenities like public transit, grocery stores and shopping centers, entertainment locations, schools, community centers and places of worship. Acknowledge the positive as well as the negative. For example, cemeteries, fire stations, and rail roads are considered to negatively impact property value. 

2. Consider Condos

2013 has offered a surplus of inventory in the condominium market. This means you can negotiate and find a very good deal when buying a condo. Pre-construction condos offer a flexible down payment, as well as incentives offered by the builders i.e. free parking, free upgrades, credit and cash backs, etc. If you don't mind waiting a few months, then you can buy a new built condo with upgrades, custom details, and warranty that covers the new built unit.

3. Work with Industry Professionals 

It is important to understand that selling or purchasing a home is for most people the largest transaction of their lives. You will need to speak with a mortgage broker, real estate lawyer, home inspector, an appraiser, and many more professionals through out the process. A real estate agent works hard to ensure that your best interest is kept in the forefront through out your journey. Their expertise and management skills will be an asset to your experience no doubt.

4. Stick to Your Budget

One of the first steps in your journey is to speak with a mortgage broker to obtain a pre-approval mortgage before you start house hunting. Knowing how much you can spend will help you in narrowing down your choices. This will also cut down on a lot of time and trouble as you won't want to risk loosing time, when you have finally decided to put an offer on a home that you love! 

5. Move out of the City

While still considering location and geographical amenities, many families have been heading out of the city where homes are more affordable and communities are growing. For example the town of Oakville has had wonderful growth in the last few years as many people have relocated from Toronto to this close-by city that is booming. It is important also to understand that often it is not possible for new and small families to live down town Toronto in a house, thus, moving a little bit farther away widens the circle of prospective locations and homes options while still following the budget.