Ask Angela- Buying a Home in the US

Ask Angela

Question: While I was surfing the web, I came across a website, something about buying a home in the US and you were featured as one of the mortgage professionals, but of course when I have time to read about it, I can't find the site. Can you please send me that site.

Answer: This site is www.canadabuysouth.ca .
It was started to help Canadians find and buy property in the US or International(soon to come). The website is still growing, with the additions of international Realtors and financing.

It is very helpful for anyone who wants to source out a home in the US or internationally. Vacation home buyers, rental home buyers are eager to find the foreclosures in the States.

How do you find a Realtor in the States to help you find what you are looking for? You go to Canadabuysouth.ca.

How do you get the financing for the home. You go to Canadabuysouth.ca and find a mortgage professional for your province.

You can also contact me, tell me where and what you are looking for, I can introduce you to the Realtor that will look after you.

This website is unique as it brings everyone together in one place, with a common goal of helping you with a real estate purchase in unknown territory.

Mom, Dad I Need a Cosigner for My Mortgage

Cosigner

A third party to a loan who provides a guarantee that a loan will be repaid. The guarantee by the cosigner reduces the risk that the lender will lose the money he/she has distributed to the borrower. The cosigner signs an agreement with the lender stating that if the borrower fails to repay the loan, the cosigner will assume legal liability for it. A cosigner may be an institution, but is often a relative or friend of the borrower, especially for personal loans. Persons with little or poor credit history sometimes cannot receive a loan without a cosigner.  A cosigner must list the promissory note as a liability on financial statements.

Now that the Canadian government has tightened up the mortgage rules, some parents are being asked to co-sign  a mortgage for their children.

Why Use a Co-Signer

1. Credit score not where it should be
2. a blemish on the credit report
3. Too much debt
4. No credit score
5. Not at job long enough
6. Messy divorce or separation


The Cons of Being a Co-Signer

Often, an adult child will ask the parent to co-sign, as a speedy way of getting a mortgage for a house and some parents have been told they will just be the mortgage for 1 year.  The facts are the lender does not have to release the co-signer at any time.  You may be on that mortgage for the whole 5 year term or whichever term you picked.  The reasoning is that the lender wants a sure thing, no risk when the co-signer with a proven credit track record is on the mortgage, there is less of a risk.

When you co-sign, it is as if you have to make that payment every month.  This means if the parent wants to take out a new mortgage for themselves, they may not be able to because of debt servicing.  Even though they have never made a payment for their child.  The lender must make sure there is enough money for both payments in case things go bad.

To get your name off as co signer, you may have to terminate the mortgage and have the child get a new mortgage in their name.  There are penalties for terminating the mortgage , is your child prepared to pay the penalty? If not, the parent may have to pay the  penalty to get their name off of the mortgage.

Nothing breaks down a family relationship faster than money.  The old saying never lend money to family- may come into play if something goes wrong. 

The Pros of Being a Co-Signer

There may be  pros to being a co-signer it just depends on what happens in the life of your family.  The  happy feeling of being able to help your children can turn 360 degrees in to being the worst decision of your life.  As there are no guarantees in life and what will happen, you have to decide that you can make those payments for the term of the mortgage no matter what happens.

If you plan on co-signing just for 2 years, only take out a 2 year term. That gives your child 2 years to get their credit score high enough to take on the mortgage by themselves.

It is nice to think about helping your children and your children will appreciate it, but make sure you look after yourself first.

True Story About Co-Signing

Many years ago, my father co-signed for a car loan for me. I had been married and had no credit score to my name.
At the dealership my father told the loans person that the loan was to be put into my name, as I was the one needing the credit rating,  The loans person agreed.
We signed the papers. I drove away with my nice new to me car.
Fours years later when I had finished paying off the car, my father received a nice letter from the dealership, thanking him for the business and paying the loan off in a speedy manner.
I checked my credit report and the loan had never been in my name.

So, the moral to this story is, if you think co-signing will help raise your child's credit score, it probably won't.  Their name may be placed in 2nd line and may not show up on their credit report at all.

The Process Of Home Buying

1) Employ A  Realtor
A crucial and initial step is to choose a real estate expert who would assist you to locate your dream home and adjust your financial anticipations.

2) Call a Mortgage Professional for the best rates and terms
If you call a mortgage professional for mortgage rates, you can get a rate that can really help you save a substantial amount throughout the span of a loan. A small variation of 0.5% can also become significant.

3) Prequalify for a loan
During the early stages, you would wish to become prequalified for a mortgage loan. This gives you the amount that you can afford. ( Be forewarned that a prequalification does not guarantee a loan as most prequalifications are only computer generated. Always when putting in an offer have it subject to financing approval.) This gives you the flexibility to search for the right home, particularly when there are so many keen buyers. The seller also realizes that you are sincere in purchasing the property and can afford it.

4) What are your needs
To make a practical outline of the property that you wish to buy. What are the must haves and what can you live without?  Prepare two lists: one for the essentials and one for leisure. Update your lists as you go on house-hunting. Keep in mind that you can get a Purchase Plus Improvement Mortgage which would get you extra money to make improvements on the house you wish to buy.

5) Visit properties
Now you are prepared to visit properties. Make sure that you get a feature sheet of the properties you come across. Every time you go out to see more houses, update your notes to instantly get rid of any property that does not fulfill your requirements.

6) Understand the aspects that assist or hinder resale
In some locations, a swimming pool really takes away a part from the value of a home and it becomes more difficult to sell it. In areas with attached or two car garages, the future value and home buying potentials might be badly impacted by a single or one car garage. Your realtor can give you more information on these items as it relates to resale values.

7) Rank the houses you visit
Subsequent to visiting every house, jot down what you appreciated and what you did not. Prepare a ranking arrangement that clearly defines the home buying domain.

8 ) Make an offer
As soon as you have identified your dream home, the financial and legal aspect of home buying comes into play. Since the objectives of the home buyer and home seller are not the same, take the help of your agent for arriving at a positive outcome.
Prior to your date of closing, just ensure that you have done all essential deposits and finished the formalities such as title, mortgage , homeowner’s insurance.

9) Make arrangements for home inspection
Once the offer is accepted, but before the deal is finalized have the home inspected. That way if any expensive problems arise you can either walk away or renegotiate the price of the home.

10) Closing
Financing has been secured, home inspection went well, you are happy with the house. This is the step that you go to the lawyer and sign final documents, give lawyer cheque. The closing date is usually the same date as possession date, but not always.

11) Get ready to move into your new house
Before moving into your new house, phone hydro, gas company, telephone company, etc to set up a date for hook ups. Check fire alarms to make sure they work.  Do the change of address at the post office for your new address. The best time for renovations is before you move in, try to get them done before by staying an extra month in your old place.

For a great mortgage.

Angela Kroemer, AMP

Mortgage Professional

TMG The Mortgage Group Canada Inc.

TMG Sharie Marie Mortgage Team

Local: 1.250.650.4182

Fax: 1.888.679.0192

akroemer@mortgagegroup.com

www.KROEMERmortgages.com

Facebook pages

https://www.facebook.com/#!/akroemer

https://www.facebook.com/cvmortgages

https://www.facebook.com/campbellriverbc

No downpayment-- read on

Stop Paying Your Landlord’s Mortgage! Own Your Own Home

The thousands of dollars in rent you’ve paid to your landlord may be a staggering figure— a figure you don’t even want to think about. Until now, buying a house hasn’t seemed possible; it didn’t seem to be in the financial cards for your foreseeable future. Or is it? This situation is common: countless people feel trapped their home rental, pouring thousands of dollars into a place that will never be their own—they think they’re unable to produce a down payment for a home in order to escape the rental dilemma. However, putting the buying process into motion isn’t as impossible as it may seem. No matter how difficult you believe your financial situation to be, there are a few key facts that can help you make the step from the renter’s rut, to your own home-owning paradise!

Initially, of course, the most daunting factor involved in buying a house is the down payment. You know you’ll be able to handle the monthly payments—you’ve done this, and possibly more, for years as a renter. The hurdle, instead, seems to be accumulating the capital needed to put money down. Here’s the good news - this hurdle may be smaller than you think. Take a look at the following points and explore whether any of these scenarios may be possible for you:

1. Find a mortgage broker to assist you with your options for accessing different lenders.

Mortgage brokers have access to more than just one lender, usually they deal with over 40. Some of those lenders will work with clients to get them into a house with various options available for down payment and closing costs.

2. Buy a home even if your credit isn’t top-notch

.

If you have saved more than the minimum for a down payment, or can secure the loan against other equity, many lending institutions will still consider you for a mortgage, despite a poor credit rating. And working with a mortgage broker we only obtain one credit bureau to save you rating from multiple inquiries.

3. Find a seller to assist you in buying and financing the home.

Some sellers may be willing to bear a second mortgage as a seller take-back. The seller then assumes the role of the lending institution, and you pay him/her the monthly payments, rather than paying the price of the home in a lump sum. This is an additional option if you have a poor credit rating.

4. Federal Government First Time Home Buyers Plan (HBP).

Canada Revenue Agency now allows first time home buyers to withdraw up to $25,000 from your RRSP contributions to put towards your home purchase. There are specific guidelines for this program which can be found at cra-arc.gc.ca.

5. Create a cash down payment without going into debt.

You may borrow the down payment from a loan or a line of credit. As long as you can service the repayment amount this is a viable option. You may also be gifted your down payment from a family member as long as it is genuinely a gift and it is in your account 15 days prior to the closing date. You may also have a co-signer on the application to increase the strength of your application for approval.

You now know, there are options. The next step is to educate yourself on what your own personal possibilities might be and how to follow through with this goal. You should be pre-approved for your mortgage before searching for a home. The process is free and doesn’t place you under any obligation. Its simple, you can be pre-approved over the phone! Once a credit application is submitted, you’ll receive a written pre-approval, which will guarantee you to a specific dollar range or mortgage amount. When you have the pre-approved mortgage amount, you’ll know the price range to look in. Make a commitment to break out of the renting rut. Start today! Call Angela to get started on buying your home!!!!!

www.mortgagegrp.com

Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
1.250.650.4182
akroemer@mortgagegroup.com
www.KroemerMortgages.com
Your Mobile Mortgage Professional in The Comox Valley

CMHC--Buying a House

http://www.cmhc.ca/en/co/co_007.cfm

A video on buying a house and what to expect going through the buying process. The video is very general, so if you have any questions give me a call.




Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team

1.250.650.4182
akroemer@mortgagegroup.com
KroemerMortgages.com
Your Mobile Mortgage Professional in The Comox Valley

Sharie Marie Mortgage Team Wins A Prestigious Award

Last week the Sharie Marie Mortgage Team won Real Estate Company of the Year at the Vancouver Island Business Excellence Awards.

The Sharie Marie Mortgage Team is a team within TMG The Mortgage Group, last year's winner of Brokerage of the Year at the Canadian Mortgage Professional Awards.

"It's an honor for our team to even be nominated, let alone win this huge award," says Angela Kroemer, Comox Valley's Mortgage Professional on the team.

Angela has been a proud member of this team for the past 6 months, and has been so happy to help her clients realize the money saving potential that is within their mortgage.

The Sharie Marie Mortgage Team focuses on educating their clients, and making sure they fully understand all that comes with their mortgage, as so many borrowers tend to overlook the privileges that are available to save them money.

"It's great timing for our team to win this award," says Angela Kroemer, "as with rates as low as they are, almost any home owner can benefit from a refinance right now."

Angela and the rest of the team would like to thank the Business Examiner for choosing them as the recipients of this prestigious award, as well as let the public know that now is a great time for a free mortgage check up.

Let us see if we can save you money!

Call Angela Kroemer to book an appointment.

Congrats to Sharie and our Team !!!!!!!!!














Thank you
Angela Kroemer, AMP
Mortgage Professional
1.250-650-4182
akroemer@mortgagegroup.com
www.ComoxValleyMortgagesToday.com

TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team

The "After Summer Motivated Housing Market" is Open

The weather has changed from hot to cool.  The mountains have gotten their first sprinkling of snow around here,

With the cool weather, the "after summer motivated housing market" opens up.  What is this market?
It is those houses that did not sell in the summer time.  Usually the house price has an
advertised price drop in the Fall and the house owners are motivated to sell.
Why are they motivated?

If you do your homework  you may find out:

- they have bought another house and have already moved in to new house
- they have secured a job outside of the Comox Valley and need to move this house now
- there was a break up of the relationship and they want to move on with their lives
- they can't afford to keep their house because of their own personal economic conditions

A price drop does not necessarily mean there is some thing wrong with the house.
The owners just need to sell it.

This year it has been a buyer's market -- which means the buyer stipulates the terms and it is up to the seller to accept or not.  If the seller is motivated they will consider all terms.

Also , this year our Lenders are motivated.  They are willing to go above and beyond to get our clients a mortgage.

With this mix of a Buyers Market and Motivated Lenders it is a very good mix for people who may not qualify for a mortgage in "good times" to qualify for one now.

If you want to know if you qualify and for how much, contact me.  There is no obligation and it is a free service.  It takes about an hour to fill out an application. It can be done over the phone.  That hour spent could get you in a place of your own by Christmas.

Remember our Lenders are Motivated.
Run anything by me and I will see what I can do.

Thank you
Angela Kroemer, AMP
Mortgage Professional
1.888.679.0190
akroemer@mortgagegroup
www.ComoxValleyMortgagesToday.com
TMG The Mortgage Group Canada Inc.