Here are some tips to think about when you are considering purchasing your first home in the future:

Your Credit

Poor credit or no credit you will want to get it in check before any financial  institution will provide you with a mortgage approval. It is good practice to pull your credit yourself once a year to ensure that it has no errors and to correct any mistakes that might be reported incorrectly. This is always a good idea to make sure no one has stolen your identity as identity theft is also becoming more popular.

Having Balances on your existing credit also can lower your credit score, so if you have any credit cards or credit lines etc it is recommended that those balances do not go above 50% of the allowable credit.

Pay your bills on time – Keep your payments on time to ensure that your existing creditors are reporting positively to your credit bureau derogatory credit is the only reason why you will be turned down for a mortgage, after all why would a bank want to lend you money if you cannot seem to pay your bills on time.

Down Payment

You will require at least 5% down to purchase your new home. If you are currently saving for your down payment, consider getting an RRSP loan which is secured by the RRSP amount. These loans are relatively easy to acquire and assist in building good credit and in turn commit you to saving for your down payment. When your loan is paid in full you are then allowed to apply your RRSP as your down payment (max $25,000)

Mortgage management for your first Calgary home

1. How much mortgage can you afford? When qualifying for a mortgage you must consider all your current financial obligations such as loans, credit cards, debts etc. This is an an opportune time to discuss your financial picture and obligations with a qualified mortgage professional.

2. Prepayment Options: Different lenders offer different terms and conditions in your mortgage. Just like those on any contract you need to be aware of your options and choose a mortgage that offers you the options that best suit your needs and lifestyle. Some lenders will allow you to prepay up to 10% per year of the original balance while others will go as high as 25%

3. Payment Acceleration : If you choose to pay your mortgage every 2nd week instead of monthly or bi-monthly at the end of the year you would have made an extra payment, this ‘extra” payment that you have made is directly applied to the principal of your mortgage and could save you a substantial amount of interest and overall shorten your mortgage amortization.

4. Payment Stability: Many first time home buyers take solitude in knowing what thier payment will be over their term (typically anywhere from 3 to 7 years), which is why many will choose a closed mortgage which will guarantee the interest rates and payment for a preselected period of time. But just wait… those who are little more “daring” and go for a variable rate mortgage could potentially save thousands in interest as the variable rates are historically lower than locked term rates. The downside of course is that your payment could change if interest rates go higher.

5. Blended Mortgages: Now if I hadn’t confused you enough some lenders allow you the options to blend different mortgages together to meet your needs. As an example you could take a portion of your mortgage as a revolving credit line and leave another portion as a locked term. This would allow you to  have the best of both worlds essentially.

This is a question that does not have an easy answer and the answer can be different for each individual. When you are younger it is probably a better time to take more financial risk then when you are older and later have dependents. The economy over the last few years has been unstable making it a bit foggy to know when the right time to buy a home might be. While our neighbours to the south have had a rough ride in their real estate markets our Canadian real estate market has followed it’s own path and has seen a different faith.

While it is true we tend to follow suit with the united states on interest rates and other trends but our real estate market has been on it’s own course. We have seen correction in the marketplace here in Calgary over the past years but it overall has done relatively well considering some of the other cities.

As a first time buyer in Calgary taking advantage of the lower prices and all time low interest rates could certainly be advantageous. These opportunities were not available over the last years. The market is showing stability and prices are stable with moderate gains in average price proving that the Calgary real estate is still a viable and affordable option.

With stable real estate values it would appear that now is the time to get into the market as a first time home buyer and take advantage of some of those affordable property prices and all time low interest rates. But you still want to make wise decisions about the type of home or condo you will want to buy now more than ever. Location is important as well as community and the amenities available to you, you will want to choose carefully.

Purchasing an older home can be a great way to save a little money while also enjoying the charm and character that only an older home can provide. At the same time, there are several things to keep in mind when purchasing an older home. Otherwise, you might find yourself feeling severely disappointed by your purchase.

Making Upgrades

While older homes are typically less expensive to purchase than older homes, they can be more costly in the long-run. This is because older homes often require many upgrades in order to be safe and to comply with regulations. The electrical system, for example, may need to be upgraded in order to meet your electrical needs. Not only do many older homes have ungrounded outlets, but they may not have enough circuits to handle your modern-day appliances. Even a home that is only 20 to 30 years old may not have an electrical system that is capable of handling your needs. It is also important to inspect the furnace and other appliances before making a purchase. If they are the original appliances, you should be prepared to replace these items in the near future.

Planning for the Future

One of the perks to purchasing an older home is that they are typically located in well-established neighborhoods, for instance Northwest DC real estate. As such, you likely will not have to travel far to find grocery stores and other community amenities. At the same time, there is often little room for expansion when purchasing an older home. If the neighborhood is well-established, it is unlikely that new amenities will be added any time soon. Similarly, there may be no space or opportunity for you to add on to the home. If you think your needs may change in the near future, purchasing an older home with little room for growth or change may not be the right option for you.

Purchasing an older home can be the right choice for many people. Before making this decision, however, it is important to consider the pros and cons of purchasing an older home in order to be sure it is truly what is right for you.

About The Author – Kevin Koitz is a Washington DC native & Realtor and specializes in Bethesda real estate.

Clearly, there are many advantages to having a home warranty. After all, home warranties cover the expenses that are associated with costly repairs to major systems in your home, including your heating, plumbing, electrical and air conditioning units. Home warranties will also pay for the repair or replacement of built-in appliances, even if they break down simply due to normal wear and tear. Warranties are even typically extended to septic systems, which can be especially important for areas like Lake Austin or anywhere waterfront properties are prevalent.

It is important to note that a home warranty is different from homeowner’s insurance. While homeowner’s insurance pays for things such as theft and disasters, a warranty covers the cost of repairing and replacing appliances and systems that have simply stopped working due to wear and tear. Whether the home being purchased is new or not, there is always a chance that certain items will stop working properly. Furthermore, for those who are purchasing a used home, the original warranties that came with the appliances and other systems may not transfer to the new owner. With a home warranty, these items are still covered even after they have changed hands.

While home warranties are usually in place for just one year, you might be surprised by how often you use it during this timeframe. In fact, many experts estimate that the average homeowner uses his or her home warranty more than two times per year. When moving into a new home, the last thing you want is to have to pay for unforeseen repairs and replacement costs. This can be especially true for older homes, such as those in Central Austin, which may already be prone to difficulty. Having a home warranty in place provides the peace of mind you need as you transition into your new home. Furthermore, if you wish, you can choose to extend your warranty for another year once the initial year is up.

While home warranties offer many benefits to home buyers, they offer benefits to the seller as well. Namely, a seller can significantly increase his or her chances of selling the home by offering a home warranty. With today’s market being so saturated with homes for sale, sellers are continually looking for ways to make their home stand out. By offering a home warranty with the purchase of the home, the seller sweetens the deal while also showing that he or she stands behind the quality of the home. In fact, people who offer home warranties with their homes typically sell their homes far more quickly and at a better cost than sellers who do not offer a warranty.

About the Author – Eric Bramlett is broker and co-owner of One Source Realty, a boutique real estate firm that services Steiner Ranch and the greater Austin area.