Deanne's Blog

A Mortgage Calculator can be a good tool to help you determine what your payments might be on a property based on varying factors. You can change different variables such as price, down payment and interest rate and calculate the differences each change makes in a payment.

This can start to give you a bit of an idea, but before you start looking at any houses you need to speak with a mortgage specialist. You may have a relationship with your current financial institution – many people choose to go here for their mortgages as well. Another option is a mortgage broker. A broker has access to many different lenders and can often shop around for the best mortgage for you, while only pulling one credit bureau.

I have a few mortgage professionals I refer my clients to. While there are many great options – 3 that I have had good experiences are Eva Neufeld, Paul Daigle and Diana Lee.

Some things that will be considered when you apply for a mortgage are income, credit, down payment, and debt ratio. How much money do you make? You’ll need to prove your income, and length of time at the job. If you’re self employed you’ll need an even longer history. Ideally your credit score is high – at least over 600 – and you have little to no negative reporting on it. Things like missed payments or collections will work against you. You will need a down payment, try to plan for at least 5% down. How much debt do you already have? If you already have a bunch, you may need to pay some of it off before you’ll be approved.

Just for fun – check out these mortgage calculators. As always, feel free to connect with me anytime. Here, by phone/text at 780-915-1634, or email deanne@deannesells.com

So, you’re ready to buy a home? You want to stretch your money as far as possible.

The average home sale price in the Edmonton area in September 2017 was $371,616 – down 1.67% from September 2016, and down 0.55% from August 2017. We can break this down further into detached single family homes at $440,330 up 0.40% from last year, but down 2.06% from last month. The average sale price of attached single family homes in September 2017 was $349,956 down 7.95% from last year and 5.37% from last month. We have condos coming in at $251,705 – down 0.94% from last year, but up 2.62% from last month.

There are some areas where you might get more bang for your buck. Look at outlying communities such as Spruce Grove, Stony Plain, Leduc, Morinville, Beaumont. Within Edmonton, there are some neighbourhoods that may offer additional value. Often these are older neighbourhoods – home built in the mid 1900s.

There’s always an option to purchase a home with less bedrooms, for example 2 instead of 3. A house with no basement will have a lower price tag. Being located close to a busy street. Keep in mind that although these factors may decrease your mortgage amount, their resale value will also be effected. How long you plan on staying in a house is important. Sharing a wall (or 2) can make a home more affordable. Duplexes and row housing are often less than detached homes. Condos can also be priced lower, but keep in mind there will be condo fees to pay – that needs to be factored in to your budget. There’s the option of mobile homes, again there are monthly fees associated, be aware of what those are.

You may have a pretty specific list of wants and needs for your new home. As your list grows, your options narrow, leaving out some lower priced homes. Prioritize that list. What are the things you cannot live without? Sacrificing one thing may get you another, and save you money.

Then of course, there’s the “fixer-upper”. Is it realistic to buy a lower priced home that needs some love? The first question is – do you like the location and basic layout of the house? These are 2 things you can’t (without great expense) change. Secondly – how handy are you? Or do you have a friend or family member who is willing and able to help with renos? The reason I ask ask question is because if you have to hire out all of the renovations – the cost can rise rapidly. If you are able to eliminate some, or all of the labour costs, you can save a lot of money. If you’re able to do it over time, it might also be more feasible. Take a look at the price of the home, make a list of the improvements you plan to make. Then price out the cost of materials, and potentially labour to have all of these items completed. Is it in your budget? Alternately can you finance the cost?

I’ve been a licensed Realtor for over 10 years, I’ve facilitated hundreds of transactions. I’m more than happy to answer any questions you have, whether you’re buying, selling, or just wanting info. You can contact me here, or by phone/text at 780-915-1634 o email deanne@deannesells.com

Deanne Miketon

Associate Broker/Realtor

2% Realty Pro

www.deannesells.com

Welcome to my new blog! I look forward to sharing new and exciting updates about the Real Estate Market and what is happening around town! Stay tuned for new posts coming soon!