Get Advice Well Before You Buy

I've had many clients come to see me anticipating the purchase of their first home. But often that excitement is soon replaced by disappointment after I've examined their financial situation. If only they had come to see me a year ago, 6 months ago maybe they would now be prepared to buy.

Financial Institutions base their decision to lend money for a mortgage on many factors. The big one is credit. There are simple things the client can do to their credit to be in a better situation to buy. Make sure they have at least 2 revolving credit lines. Revolving credit is payments which could change every month such as a Credit Card. Those credit lines should have a limit of at least $2000. Many Financial Institutions also want to see at least 2 years history of activity on those cards.

The second thing about Credit is the balance on those cards. Your credit score increases if the balance on the card is not near the limit. Try to keep your balance less than 70% of the limit. If you are at 50%, even better. The key here is to use your card regularly but pay it off as soon as you can. So if you have a high balance on your credit cards, pay them down before allowing your credit bureau to be pulled.

The final thing I will mention is the number of inquiries on your credit bureau. When applying for a credit card, looking to buy a car or a house, companies will inquiry about your credit history. Too many inquiries, hurts your score. If you have many companies checking into your credit, it may look like you are desperate for money. A few checks a year is fine. But if apply for a credit card at every kiosk offering a free T-shirt, then you're credit will suffer. Keep this point in mind not only when getting ready to buy a home but once you're in your home as well.

Aside from Credit there is also the issue of saving for a down payment and closing costs. There is also your employment history to keep in mind. Most Mortgage Brokers will work with you for free to help get you get ready. It's never too early to meet with one, even if you are planning to buy years down the road. We will help put you on the road to becoming a home owner.

This blog is courtesy of Kevin Babin from Dominion Lending Centres in Saint John. For more information on mortgages you can contact him at 506-642-5363

Great Mortgage Questions - Part Two

Now that we have the two key questions under our belt and by now hopefully you have some answers from your lender here are a few more that may help you land the best deal for you and your family.

Now that you have a rate that you’re happy with and are ready to go shopping for your new home ask your lender this “ How long will you hold that rate for me”? Depending on who you are dealing with you may find that it is only for the next 30 to 45 days and if so you had better get moving. Some lenders will provide a very attractive rate but only for a short time period, it’s their way of getting some quick business. Or you may find yourself being offered a rate but locked in for the next 6 months. Sounds great but if you find something fast will they give you a better rate for a quick close?

So the second questions today should be if “rates drop will you automatically lower my rate”? And “how will I know.” I think the reality is that you always have to ask before you sign if this is the very best you can get. It’s difficult to be so aggressive but hey it’s your money and nobody is going to look after it better than you!!!

If you haven’t already noticed when you start shopping for a home, real estate agents and sellers will ask if you are pre-approved. The reason they are asking is to determine how serious you are! If you are prepared and hand over a pre-approval letter or can say you are pre-approved with so and so from this or that bank watch how you get more of their attention. Believe it or not there are a lot of tire kickers in the market and nobody wants to waste their time only to find out this buyer has no intention of buying. So the final question for today is “Can I get pre-approved for this rate and will you put it in writing”? This option will give you some negotiating leverage and we all know any leverage is good leverage.

More great mortgage questions coming soon from Oakhill Realty or call us today and we’d be happy to share all our knowledge with you.

Great Mortgage Questions

The time has come to get a mortgage for the new home you are about to purchase or its time to renew the mortgage you have. Well if it is a renewal most of you will go to the same lender you have always used and take whatever it is they offer you and walk away till it comes up again. In either case please do yourself a huge favour and if you only do one thing ask this question;

“Is the rate you’re quoting me the lowest I can possibly get, given my qualifications and preferences?”

What an awesome question! I can only imagine the shock on most lenders faces when someone has the internal fortitude to stand up for themselves and ask this one. The stammering that would go on in most office would be hilarious

If you find that one to confrontational how about this one;

“If I find a lower rate for a similar product elsewhere, will you match it?”

My guess is that the answer would most likely be "yes" and if you are quick follow this up with our first question. Our advice would be to never sign the dotted line unless you have a couple of comparable quotes or know you have the best deal.

Having said that there is also the relationship question you need to ask yourself. Will this lender be here for me should I need a favour down the road? May be times are difficult and you need to skip a payment or two or you need to change the agreement because something significant has happened in your life like the loss of a spouse. How will this lender behave if all you have done is beat them up at every possible opportunity?

There is always lots to consider but go in prepared and know what it is you need. More good questions to come, stay tuned or like and follow Oakhill Realty on facebook.

Mortgages – questions you need to be asking!

Over the next few weeks we are going to provide you with some great questions to ask when shopping for a mortgage. These tools will be helpful regardless if you are looking for your very first mortgage or a seasoned veteran. The only assumption will be that you qualify meaning you are good to go and that a lender will advance you the funds or renew your mortgage for you.

We will mix some advice or our opinion in from time to time but keep one thing in mind there isn't a one size fits all option available. Every mortgage is for “your” wants and needs and they can vary from person to person or term to term. Today may be it is all about the best rate but when you renew may be you need a mortgage with flexible terms because maybe a move is in the works.

Our first bit of advice is shop around, check with your bank and compare with other banks. Ask a mortgage broker to give you some quotes, check with another because when you shop for just a mortgage the credit bureaus look at this as you being a wise investor they don’t beat your credit score up. Just make sure you are shopping for just one product, avoid filling out credit apps at every store you enter because doing this while you shop for a mortgage could have a huge negative impact on your credit score. Some banks will tell you if you shop around that you will take a hit…well our advice here is strike this one of your list as they don’t know what they are talking about or they know their product doesn't compete with others available.

Our second tip is to deal with a mortgage specialist or mortgage broker!!! The banks have staff selling a great number of products today, insurance, investments, and mortgages and then they open accounts or work as a teller when it’s quiet. This we understand is the new world but you want someone who has the extra knowledge to give you the right answers every time all the time! Shopping around takes time you don’t want to have to come back again to get the answers you should have received the first time. So when booking that appointment ask if you are meeting with a specialists who deals with just mortgages and if not either strike this lender from your list or ask for their specialist.

If you need help before our next blog don’t hesitate to call us at Oakhill and we would be more than happy to point you in the right direction. We've dealt with most of the lenders in our market more than once we know the good ones and we've met a few…well let’s just say ones we avoid too!

Happy New Year, be safe and enjoy the holidays with family and friends!

Trendwatch – Kitchen Ideas for 2015

This year, the granite look is in but that doesn't necessarily mean spending thousands on real granite. If you are looking for something trendy yet practical, the 180FX Countertop Series (in over a dozen designer colours) may be just the answer! These patterns are bolder than traditional counter top colours and are available in a 2” square edge counter top profile for a very realistic look! 

Another great look for 2015 is using glass tile back splash (as a feature wall or throughout the kitchen). Available in a wide range of solid and multi-colour patterns, this treatment becomes a focal point in any kitchen and increases the overall value of the home. It works great in any modern or classic kitchen design.

With tighter budgets and smaller, more efficient kitchens becoming norm, we continue to see a strong demand for cabinet storage accessories this year. One recurring favourite is our 21” pantry cabinet with four adjustable roll out shelves. It does a great job at organizing canned and dry food items in an easy-to-find way! 

When it comes to colour, it’s all about cool greys and rich plum tones this year, and both look great in the kitchen! Prestige has a several grey cabinet colours and, when paired up with a plum accent wall, it makes kitchen come alive! Or for something more contemporary, a strongly contrasting cabinet colour, such as spiced cider, can create a look that is stylish and sophisticated

What's Hiding in Your Tap Water

Water isn't always as simple as it looks. Sometimes there's a lot more lurking in what may look, taste, or even smell like otherwise completely safe drinking water.

In much the same way that many of the processed foods we eat can hide more sugar than we expect, sometimes things get into the water that shouldn't be there. Even some of the chemicals and procedures used to treat water at the municipal level can leave behind some unpleasant byproducts, like bromate, trihalomethanes, and chlorite.

Odorless and Tasteless Contaminants

MicroorganismsWhen we think of odorless and tasteless contaminants, microorganisms are among the more obvious offenders that can go relatively undetected in water and cause pretty major problems. Common microorganisms like cryptosporidium and giardia, and perhaps the less common legionella, can all pass a sniff or taste test, but cause severe stomach upset, and in some cases of legionella's presence, pneumonia.
DisinfectantsThe most commonly used disinfectant should be relatively familiar to us since chlorine has a variety of uses, both in and outside the world of water treatment. In large, sustained quantities, however, this fairly ubiquitous additive can cause eye and nose irritation as well as chronic stomach upset. Chlorine's chemical neighbor, chlorine dioxide, used to treat and control microbes, has been known to cause anemia in infants as well as certain nervous system effects.
Inorganic ChemicalsArsenic falls into this category, as well as other offenders like fluoride and asbestos. While none of these are particularly desirable additives to have in drinking water in the first place, arsenic and asbestos can present the potential for immediate health problems and irritations.
Lead, mercury, and nitrates also make the list of hard-to-detect chemicals, since they can generally pass undetected in water - the only way to identify them is a water test.
Know the RisksIn general, regardless of the kind of contaminant(s) that may be present in your water, the most vulnerable populations are the same: young children, the elderly, and anyone with a compromised immune response.
The best thing you can do to protect yourself from odorless and tasteless chemicals in water is have your water tested.

Courtesy of Culligan Rothesay.

What is a shower water filter and how does it work?

Dry, itchy skin? Limp, lifeless hair? Soap scum or residue? If these are some of the side effects coming from your shower, then it's no wonder you're searching for an answer. For a quick fix, you could try a shower water filter as a simple DIY solution, or you could explore a more permanent, long-term, and professionally installed solution.

How do shower water filters work?

Shower water filters come in a variety of sizes and styles that fit directly onto your showerhead. These DIY solutions effectively reduce chlorine, scale, and sulfur odor, and also help prevent dry skin and chlorine damage to color-treated hair.
Once your shower filter is installed, you'll likely notice your skin feeling less dry, your hair feeling cleaner and full of bounce, and there will be significantly less scale buildup around your tub and faucet (this means less cleaning, which is another hidden bonus), as your filter will remove a huge amount of minerals and potentially harmful chemical impurities in your water.
Although adding a shower water filter can produce instant relief from hard water and other problems associated with your water supply, it is a somewhat temporary solution. Most shower water filters have a cartridge that needs to be replaced regularly. Depending on its use, you typically need to replace your filter or its cartridge after every six months of regular use.

Is there a more long-term solution?

Yes, there is! Although a shower water filter is a relatively quick and easy DIY solution to your problem, there are also long-term solutions that may provide a more effective, longer-lasting result in more places throughout your home than your shower alone.

Installing a whole-house water filtration system means cleaner water everywhere, not just in your shower. By reducing particles, contaminants, and imbalances in your water, whole-house filtration addresses hard water problems like soap scum and residue, poor-tasting water, and chemical odors by treating your water directly at the source.

Another way to reduce hard water in your shower and its effects on your entire home is with a water softener. A water softening system is designed to help reduce water contaminants, scale buildup, and increase energy efficiency while extending the life of your appliances - that means spot-free dishware, soft laundry, and more.

Courtesy of Culligan Rothesay.