6 Tips for Homebuying Success

You did it! You have saved, saved, and saved some more and you finally have the money needed for a down payment! This is an exciting time for you—and also one that can be filled with questions. As a first-time homebuyer, the market can be confusing and misleading. However, there are tips that you can use that will make the process a memorable one for the right reasons.

  1. Research the Area

Really get to know the community you are looking at buying in. Find out what it has to offer in terms of nearby schools, drive time distances to work, and other destinations. Your dream home may become less dreamy when you discover you are 30 minutes away from the nearest grocery store!

 

  1. Get a Home Inspection

A home inspection will put your mind at ease that your prospective purchase is in good condition. The last thing you want are unexpected surprises once you move in and it’s too late. Make sure you choose a credited home inspector and review the report with them understanding that any repairs will be money out of your pocket once you own the home. Knowing all the facts is a good thing!

 

  1. Use a Mortgage Broker

One of the easiest choices you can make during this process is to work with a mortgage broker—and get pre-approved! Pre-approval will give you a set budget that your realtor can work off of. This way you can have your dream home—but stay on budget too.

 

  1. Avoid Large Purchases while House Hunting

As a first-time buyer, you will want to avoid making any large credit purchases while you are house-hunting. Large credit purchases will alter your debt-to-income ratio which will directly affect how much you qualify for a loan. The less you have in the “debt” category typically will result in you qualifying for more.

 

  1. Look past Décor

When entering a home, you have to look past the cosmetic décor items such as paint colour, furniture, finishes, etc. They are easy, low cost changes that you can easily switch out if you choose to purchase the home. As a buyer, remember that the homes you are looking at will undoubtedly have the current owners touch to it but this is easily fixed.

 

  1. Make a List

While you will need to retain some flexibility in this list, make a list of both your needs and wants. Your list should encompass your basic desires (like neighbourhood and size), all the way down to the smaller details like kitchen and bathroom layout. Match the property as closely as possible to your list and be honest with your realtor when looking at properties.

Finally, use a local realtor! Realtors that are well-versed in the area will have a better idea of fair-market value in the area. This will allow you to make an offer that is in line with the true price of the home vs. the listing price. Using a local realtor will also help you to have more insights into the neighborhood. They can help you determine the walk-score, tell you about nearby points of interest and have information about the general population in the area. A realtor well-versed in the area can be an invaluable resource especially for first time buyers!

Are you a first-time homebuyer? Give us a call at Young Real Estate Group and we will meet with you to help start the process!

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The Market Update-March

Spring has officially sprung and with it the Real Estate market has picked up! In the spring we typically begin to see the market’s inventory become more saturated, an increase in buyers and a sense of urgency to buy.  Below are the statistics for March for detached homes.

Inventory

In comparison below are February’s statistics, showcasing a clear growth especially in the Langley, Cloverdale and Abbotsford area.

Inventory

Another area that has been of interest over the past few months is the foreign buyers tax’s overall effect. The interest of foreign buyers appears to be levelling off, as they accounted for  little more than three per cent of both the value and number of all transactions, according to the most recent property transfer tax data.

It is still unclear of the overall effect of the tax and how the recent announcement of the exemption from the tax if  one is a skilled worker here under the provincial nominee program and/or is a  foreign national who obtained permanent Canadian residency within a year of living in Canada.  To learn more about the exemptions check out this article.

Back to the Fraser Valley though! This month shows the general growth of the market and the increase in overall sales. This will continue over the next few months making it a great time to put your home on the market! It is a great time to look at selling your home and by partnering us at Young Real Estate we promise to work with you to sell your home for more!! #SellingHomesForMore

BC HOME Partnership Program

This new program for first time homebuyers called the HOME Partnership Program may be able to help them! In a nutshell the program breaks down as follows:

  1. Offers qualifying home buyers loans of up to $37,500, interest and payment free, for five years.
  2. The province has started accepting applications, started on January 16, 2017.
  3. To qualify, buyers must:
    1. be buying their first home
    2. obtain a high-ratio, insured first mortgage for at least 80 per cent of the purchase price
    3. have a combined gross household income not exceeding $150,000
    4. have saved a down payment amount at least equal to the loan amount
    5. be a Canadian citizen or permanent resident for at least five years
    6. have lived in BC for at least the full year preceding their application.
  4. The loans will be due in full if the buyer defaults on a payment, ceases to use the home as a principle residence or resells the home.
  5. The Facts:
    1. The loans will match a home buyer’s contribution to a down payment up to five per cent of the home’s purchase price
    2. The maximum purchase price to qualify for a loan is $750,000 (excluding taxes and fees)
    3. After five years, buyers can either repay their loan or enter into monthly payments at current interest rates
    4. Loans through the program are due after 25 years.
  6. The Application:
  7. Applicate/purchaser applies for loan
  8. Expected fees are $560.00
  9. Expected turnaround time is 5 days
  10. Housing Loan Approval is good for six months *** Pre Approval Certificate is required from a Bank before applying for the BC Housing Loan for Down Payment ***
  11. Applicants selects a home and writes offer.
  12. Lender approval and final contract to be sent to BC Housing minimum 14 days prior to closing date
  13. BC Housing will send instructions to lawyer/notary 4 days before closing date
  14. Please allow extra time if your client is applying for the program for subject removals.

For easy reference, please view the PDF Flow chartpower point, and scenario’s.

If you or someone you know has questions about this program, please contact me. I would be delighted to help!