Buying a home can be overwhelming for some, here are a few tips to help you out:

1. Keep your credit clean- If you plan to apply for a mortgage, it’s good to keep your credit as clean as possible.  It is important to understand that lenders use credit reports to determine the rates that they charge each borrower.  By maintaining a healthy credit score, borrowers can save a significant amount of money over their lifetime by having access to lower rates.
2. What can I afford?  How much you can afford depends on your household gross income, your down payment and the mortgage interest rate. Your lifestyle and your comfort with debt also come into play. Lenders have guidelines to determine how much you can afford in monthly housing costs and how much they will lend you.
3. Be a Pre-Approved Buyer- Being pre-approved helps you understand your financial limit. This allows you to narrow down your search based on a concrete budget.   Also, with a pre-approval in place, you know your financing is in place when it’s time to make an offer.

   Note: it’s important that you do not confuse mortgage pre-qualification with an income verified mortgage pre-approval. Being pre-qualified for a mortgage does not mean you are guaranteed a specific mortgage amount or rate.

4. Determine your priorities- Make a list of what you want and number it from 1 to 10.  10 being a must and 1 would be nice but can live without.  When shopping for homes this will make it easier to ensure you get everything you need plus a few bonuses.
5. Check out the neighborhood- Yes, your house is important, but the safety, location, and proximity to several amenities should be considered as well. Research nearby schools if you have children, as well as travel time to work, stores, and how your neighborhood is laid out. Feel just as comfortable with your neighborhood as your house.
6. Make sure any verbal agreements are written in the purchase contract.  The first rule in home buying is to get it in writing!  The Purchase Agreement spells out the terms between you and the homebuilder.  Confirm all details and design changes in writing so there is no confusion.  Without a detailed contract, there may be no reference point in case of a misunderstanding or disagreement between you and your builder. It may be impossible to prove what was agreed to, and difficult to enforce any arrangement or promise that’s not written down.
7. Stay calm- a house purchase is one of the biggest purchases of your life.  Buying a house is an exciting experience and can be a pain at the same time. Most first time home buyer underestimate the time and research it takes to buy a home. Buying a home can be draining and cause a first time home buyer to delay purchasing a home. There are many steps to complete when purchasing a house so a first time home buyer should stay calm and have a positive outlook.

No home is maintenance free. Proper and timely maintenance can extend the life of your home and help you protect your investment. Before cold weather hits it’s good to consider the following:

-Road salt and other de-icing products used for ice control in the winter may affect the surface of the concrete.  A good alternative to de-icers, is sand or cat litter for increased traction. 

-Window wells must be kept free of ice, snow and other debris which may block the drainage system provided and flood your new home.

-Do not allow snow or ice to accumulate on the lawn in shaded areas as this will damage the grass.  Any accumulations of snow should be distributed evenly over a large area so that is melts evenly.

-Weather-stripping around doors and windows reduce air infiltration.  Check the weather-stripping annually to ensure that the seal is adequate.  Petroleum jelly can be used to lubricate rubber or vinyl to maintain flexibility.

-Snow melting on the roof and freezing as it runs off can create ice damming.  Ice dams can cause water to back up under the shingles which will result in a leak inside.  This is a natural occurrence.  When ice dams occur, the snow and ice should be removed off of the roof at the eaves and valleys.

-If high humidity levels occur inside your new home during periods of cold weather, condensation and frost on the inside face of the windows will occur.  This is a ventilation issue and is not a fault with the window.  Condensation can result in the growth of mold on the window frame that can be controlled with a mild solution of water and bleach.

-Garden hoses should not be left connected to the hose bib (garden connection) during freezing weather as neither can drain. Ice forming in the hose due to undrained water can break the hose or the hose bib and cause the pipe to freeze and possibly burst.  Hose bibs often have a valve inside the house that can be shut off to allow the hose connection to be drained before winter.  These shut-off valves should be identified and shut-off during winter months.

Undertaking maintenance is not for everyone.  If you are uncomfortable undertaking any specific task, hire a professional.  

So you want to get into home ownership but can’t qualify for a mortgage. Now what?

First, make sure you know you can’t qualify, don’t assume you can’t. Call John Antle at TD Canada Trust at 250-212-8512 and see if he can help. If not, there are many different rent to own scenarios out there.

This is how we do it at Elkridge:

A home is rented with an option in the contract to purchase the home in the next one to two years at a pre-determined price. In order to exercise that option, the renter pays a non-refundable fee called the Option Consideration. This fee typically ranges from 3-5% and is credited towards the downpayment when you’re ready to buy. There is also a negotiated percentage (usually around 25%) of the rent payments that gets applied to the purchase price of the home.

Here’s a breakdown- Let’s say you move into an Elkridge home with a purchase price of $360,000. You pay the Option Consideration of $10,800 (3% of the purchase price). Your rent is $1800 per month with 25% ($450) being credited towards your purchase. At the end of two years, you now have accumulated $21,600 for your downpayment. As I’ve said before, ask the questions and make sure you understand what you are signing up for.

To get a full explanation contact Paul Teeuwen at 250-317-9954 and he’ll be happy to walk you through the whole process.

For Sale!

Aspen-Phoebe- 2 bedroom townhouse unit- $299,900

Cedar- 4 bedrooms, 3 baths- $402,900

Juniper-Falcon- 3 bedroom, 2.5 bathrs- $398,900

Willow- 3 bedrooms, 3 baths- $392,900

Click on floor plans for more information.  For a private tour, call Jen at 250-870-8118

Ok so now we’ve discussed the steps in the home buying process.  If you haven’t read that one, see my blog “steps for the first time home buyer”.  

Now the question is what to buy? 

There are different types of housing such as single family homes, condos, townhouses, strata communities, duplexes, etc.  Good questions to ask yourself is how close do you want your neighbours?  Do you have pets?  Do you want to maintain a yard?  What amenities nearby are required?  What types of spaces do you need?  Personally speaking I find that what I want and what I can afford is always different so if you can’t have it all, what can you live without? We need to take into consideration our lifestyle.  A good idea is to make a list of the rooms you need and the “must have’s” versus the “would be nice”. 

Nowadays, we are seeing more condominium or strata communities being built that may offer amenties such as a common clubhouse or exercise room.  These types of developments may also limit how many animals your allowed to have or rules that you can’t park an RV in front of your house or have a vehicle parked on the street overnight.  This may become an issue down the road so make sure you know what the rules are.  Every development where there is a strata fee means there is a set of bylaws or rules for that development.  Ask how much the strata fees are, they can run up to $300 or more per month!.  This is a fee that is over and above the monthly mortgage payment your making so make sure it works for you.  As an example, Elkridge single family home strata fees are $84 per month.  This includes weekly front yard landscaping during the seven month season, general repairs and maintenance in common areas, street snow removal, weekly garbage and recycling collection, water for common areas, sewer for common areas and electricity for common services, usage and maintenance as well as management, accounting services, office expenses and bank charges for the homeowner association.  Townhomes are $118 per month, includes all of the above plus insurance of the townhome (Homeowner is responsible for the insurance of contents).  Elkridge bylaws include rules such as no vicious dogs are permitted in/on the development.  An owner is limited to having up to two caged birds, two dogs, two cats or one dog and one cat.  This may be an issue if you own three cats.  If you know this before you buy you may be able to write it in to your contract as a condition.

At the end of the day, buying a house in one of the biggest purchases you will make in your lifetime.  Make sure you know what your getting into!

So you decided you want to explore your home buying options but aren’t sure where to get started?  We all need a roof over our head and buying a home can be overwhelming if you aren’t sure what to expect.  Not to worry, help is on the way!

You will need some cash on hand for a downpayment, deposit to put down with the offer, property inspection, lawyer and closing/moving costs.  Call around, get quotes from lawyers and home inspection companies so you know how much you’ll need.  Make a budget and add 10% for any unexpected costs.

The first step in home buying and before you start looking, it’s a good idea to see if you can qualify for a mortgage.  This is called a pre-approval.  What that means is a mortgage agent will look at your financials and determine what you can afford.  This does not necessarily mean you have been approved for a mortgage.  That will come after you put an offer down.  You will also need a minimum of 5% of the purchase price as a downpayment.  If you don’t have this, there are options such as Project Build to qualify for free non-repayable grants.  For help with this step, contact John Antle, TD Canada Trust at 250-212-8512.

Once you know what you can afford, now it’s time to shop!  At this point, you can hire a real estate agent.  They get paid commission from the seller of the house you buy so it doesn’t cost you-the buyer anything to hire them.  Find a Realtor you like and make them work for their money!  Tell them what you are looking for and they will compile a list of homes to show you that will meet that criteria.  Make sure you know what your getting into.  If they tell you that front landscaping is included, that probably means there’s strata fees you have to pay monthly.  Your Realtor will ensure you have all the information you require to make an educated decision. 

When you find something that suits your lifestyle, you will be ready to make an offer.  Your Realtor will have all the paperwork needed.  The purchase contract will need to be accompanied by a deposit usually in the form of a cheque.  This is usually a small amount $500-$1000.  You will have conditions to write into the contract such as “subject the the buyer being approved for a mortgage by no later than Dec 15th, 2011.”  or “washer and dryer to be included” and “subject to a house inspection by Dec 15th, 2011″.  These conditions will have a date and you will need to either waive or meet the conditions on or before the date.  Make sure your Realtor writes down all the conditions in the contract.  This is very important!  If it’s not in writing it didn’t happen!  At this point, there may be some negotiating back and forth between you and the seller.  Your Realtor will act on your behalf to get you the best price.  You will also decide on a closing date (the day you want to take possession of the property and move in!).  You will need a lawyer at this time so your Realtor can fax them the purchase contract.

Once you have an offer that has been accepted by both you and the seller, you now have an accepted offer.  This is not a solid contract until all the conditions are removed.  Now it’s time to firm up the sale by removing the conditions.  If you can’t get approved for your mortgage, not to worry, you can let the condition date lapse and the contract is then dead.  You will get your deposit cheque back.  It’s not until all the conditions have been met or waived, that it is a firm deal.  A firm deal means you have a legal binding contract and can’t back out or you lose your deposit money and there could be other remedies for the seller.

You now have a firm deal!  Your lawyer will take care of the rest.  Keep in mind, you will need money to pay the lawyer when you go to the lawyer’s office and sign the paperwork.  You will also have moving costs and need to set up your utilities who also may want a deposit. Now all you need to do is pack your stuff! 

T.J. Gardner, a new Elkridge Home Owner, is thrilled with her new home at Elkridge and the entire Project Build Society process.  Gardner and her husband Rick moved into their new home in the fall of 2011.  “The process was extremely helpful.  At Elkridge they really care, I felt like somebody through the whole process.”  Both Gardner and her husband have held steady and wonderful jobs, but the market had priced home ownership out of their reach.  Project Build III fulfilled a long time dream of owning a home in the Okanagan. 

Townhomes at Elkridge start at $297,900.  Single family homes are priced from $329,900 and there is no HST or property transfer tax.

All our homes now include in the standard package- air conditioning, stainless steel kitchen appliances and granite kitchen countertops.

Elkridge Subdivision is proud to be part of the Project Build program.  Project Build is an innovative project to help deserving people get into homeownership.  With a little help from local businesses, donors and community minded individuals – you might be closer to being able to own your own home than you think!  Non-repayable Grants are available through the Project Build Society to help hard-working families get out of renting and into owning.

By investing in our community, everyone wins. Homes are purchased, mortgages get paid, the local economy benefits and families get a chance to improve their way of life. In the true spirit of pay-it-forward, these grants are non-repayable and are meant to open up possibilities for working class families on the cusp of success.

The gift is courtesy of the Project Build Society, an independent not-for-profit society created with the encouragement of the Central Okanagan Foundation, to address the significant challenge of home-ownership in our community.  Applications can be submitted through the Central Okanagan Foundation.

For more information check out www.CentralOkanaganFoundation.org special projects, Project Build III.