Bonnyville Homes Blog

Before buying a property, you must check up on certain things to make sure everything is in order. This is essential knowledge that you must have before acquiring a property. Before signing the contract, you must ensure that the house has a fundamentally strong structure, is well maintained, and does not have a pest infestation. There are many assessments and checkups that you need to make. Do note that the costs add up to help you understand the correct estimate of the property.

There is no need for you to avoid pre-purchase assessments, though it may save you time and money. If any snags and hitches develop later, you will have to bear the responsibility of paying for repairs and maintenance. An appropriate inspection must be done before negotiating a price. For a better value, these inspections must be done by a competent and skilled expert.

Personal Inspection

A personal inspection is of great value as these give the potential buyers an opportunity to view the property and assess it. You can take someone along with you to help check out the quality and features of the property. You can take a closer look if you like to get the feel of the property. It is advisable to check if the windows and the doors are in working condition and don’t get jammed. Check the taps to see if they leak and look under the sink to check if the plumbing is good.

Look under the carpets to see if there are any rotten floorboards. Try to glance inside the fuse box, switch on all the light switches, and try to figure out the age of the electrical structure. Lookout for any cracks and flaws in the roof, gutters, and the outer walls. See if there any traffic or other sounds are heard from the nearby road. If there is any bad odour or smell coming from an adjacent factory or sewage treatment plant, you can raise concerns.

After the personal inspection is over, you can get a professional building inspection report by a surveyor. The surveyor will oversee the inspection of the structural defects like dampness or cracks. This might be missed out by an untrained eye. The survey will make sure that the building conforms to the building code of land.

Pre-Settlement Inspection

The pre-settlement inspection will let you know if the house is vacant, the property is in good condition, fixtures are functioning, and if any items like microwave or fridge are included in the sale. They can also look at the improvements and recognize unsafe repairs and restorations. Now, you can negotiate after knowing all the pros and cons of the property.

A pest inspector will check if the property is infested by wood-destroying insects like borers or termites. The outside walls, under the floor, and the cavities on the roofs and walls should be checked. Apart from the interior and the exterior, the fence, trees, and flower beds also should be inspected. These building checkups are done before the exchange of contracts so that you can identify the problems, and, in such case, you can withdraw.

Before purchasing a home, it is prudent to look behind the deal as to the hidden costs which you are liable to pay. It will increase your total budget at the last minute. First, select a home of your liking and once you are satisfied with the location, cost, and structure of the house, then arrange for funding. The most common way of raising funds to purchase a house is by way of mortgage. The process of getting a loan sanctioned and disbursed is a long one as many formalities need to be fulfilled.

Be ready with all the documents to save time. The title deed should be changed first to enable you to get the loan. You will come across a variety of fee that you might have to pay. That is why it is necessary for you to keep yourself updated on what documents are needed and the various fees to be paid before you can apply to get a mortgage loan.

You should also understand the period of instalments and the rate of interest your loan carries. All this information along with the loan estimate will be made available to you by the financial institution within three working days on receipt of the loan application.

Let’s discuss some of the hidden costs.

Appraisal and Inspection Fee

Before any finance institution sanctions your application, they will need to assure themselves that the property is in good condition. They will look at the age of the house, its structural foundation, locality, market value and more. An independent third-party will appraise the house and send a report to the institution as to the feasibility of sanctioning the loan. A one-time fee will need to be paid for this service.

While the appraisal is usually an external team, the inspection is an internal one. The financial institution will send its team to inspect your home. They look at the home site and see that the structure of the house is sturdy.

Credit History

The financial institution analyzes credit history to identify any associated risks before sanctioning your loan. A good credit score helps you to get a low loan interest rate. While the fee for this is not very high, it is better you take everything into account.

Title Fee

When you purchase a home, the title of the property needs to be transferred to your name. This entails a fee to be paid to the lender.

Document or Processing Fees

Since creating the legal document is a time-consuming process, institutions charge a fee for the time they have spent on it.

HOA Fees

In certain communities, the institutions or banks charge association fees once you become the owner of the home. This varies depending on the locality.

Loan Origination Fees

This is the biggest fees you need to pay before the loan is disbursed. The lender charges 1% of the total loan amount. Insurance fees also need to be paid to the lender so that the lender is insured for the loan.

Property Tax

Finally, you have to take into account the property tax to be paid to the municipality when you become the owner of the house.

If you’re looking to buy or sell in the Bonnyville area, you need someone with the experience to find your next home! Get in touch with Gerry Storoschuk, Bonnyville Realtor® and find your dream home today!

When you plan to purchase a house, it involves a lot of running around to get the best of everything. There are many things you need to look for before a deal can be struck. The house you have your eye on needs to be financially within budget and as well as satisfy a range of requirements.

If you happen to be a first-time buyer, then one of the first things you would have to do is get a pre-approval from the lender. The lower the mortgage rate, the more the buyers waiting to purchase. In Canada, a real estate agent will guide you only if you have a pre-approval for a mortgage. This also raises your confidence that funds can be received immediately if a deal is struck.

Good credit scores help in getting easy pre-approval. So, keep your credit rating high, otherwise, you will not be able to get the pre-approval from a financial institution. Keep your down payment money of about 20% ready. If no down-payment is given, then you might have to pay more for getting CMHC’s mortgage default insurance.

The calculation of how much you must pay will depend on the mortgage amount and the down payment. The higher the down-payment, the lower the loan amount required. To increase your down-payment, you can borrow from RRSP. This will reduce your loan amount. First-time buyers can get some tax-free benefits.

DO’s

• Look for an estate agent: Get hold of a good agent on whom you can rely upon. Leave it to them for getting you a good house within your budget. The agent will help you with everything from inspection to getting credit and looking after the insurance.
• Check your budget: Get control over your budget and savings. Otherwise, things will get out of hand later. Always investigate your future capabilities before taking the decision of buying a house.
• Be frank: Always go with an open mind to see the house. Be realistic in your approach and ensure that you only visit the houses that fall within the range of your budget.

DON’Ts

• This may not be your first or the last home. So, don’t be too calculative for you are going to move some years later or at least let it out as an investment.
• Don’t be emotional: Don’t allow your head to be ruled by emotion. Think of the pros and cons and the resale value. If the location is nice, naturally, the resale value will be high. This should be one of your major concerns.
• Never go for big expenditure without getting a pre-approved mortgage. Your loan will depend on your income, savings, and credit ratings. So, it makes sense to save as much you can to avoid issues later.
• Closing costs: Always be careful about closing costs as it increases your loan amount significantly. The CMHC advises you to keep 1.5% to 4% of the cost as a backup. Apart from this, it is better if you can make provisions for emergencies as well. For instance, some repair work might need your immediate attention.

If you’re looking to buy your first home, look no further! Get in touch with Gerry Storoschuk, Bonnyville REALTOR® and find your dream home today.

The lending institution always sees your credit score or FICO scores to determine the loan amount and the rate of interest. A good score will enable you to get the funds with a lower rate of interest as there is less chance of not making regular EMI. If you are gearing up to buy a house, there are some considerations and factors that you must go through. Let’s take a look at what you need to consider.

Credit score: If you are looking for more money to cover the purchase of your house, you need a loan. The better the credit score you have, the easier it is to get the loan approved from the lending institutions.  Before applying for a mortgage loan, it is advisable to get your score boosted.

Budget:  Start saving and see that you do not spend more than 30% of your income on housing. If your savings are less than 20%, then you may have to go in for private mortgage insurance.

Good estate agent: Choose a reputable estate realtor who has many years of experience. They may help you with finding a good lender and inspection authorities.

Mortgage: Get a pre-qualification letter from the lender before you start searching for a house. The seller may insist on this letter as they may like to reassure themselves by knowing who is lending you the money.

Create time to look at the houses: If you have plans of buying a house soon, keep some time aside to visit the house when the agent calls you. The earlier you see the house, the better it is for you.

Signing the contract: Once you like a house, sit down for an agreement regarding the price. Once the purchase agreement document has been signed, it becomes a legally binding document. On signing, advance money will have to be paid, which is usually around 2% of the price of the house. If you fail to pay the balance, the advance would be forfeited. The agreement deed will contain many contingency clauses like the appraisal, inspection, and financing clause. These contingencies allow the buyer to back out later.

Home inspection: The buyer should check the inspectors’ credential as they are ones on whom you are relying on to ensure your investment is worth it.

Review the inspection report: See the report carefully as to the structure of the house, the roofs, HVA systems, and so on. Ensure that no detail has been blown out of proportion or vice versa.

Repair works: In case the house needs any repairs, talk to the seller and get it repaired as soon as possible. This would be at the cost of the seller. The lender might sometimes insist on getting the repair work done before giving the loan.

Final check: Have a checklist and go through it. Ensure all the repair work is done as spelt out by the inspection person. Once everything is in its place, have a meeting to conclude the deal.

If you’re looking to buy a house in the Bonnyville area, you’re in luck! Get in touch with Gerry Storoschuk, Bonnyville REALTOR® with Royal LePage Northern Lights

If you’re in the market for buying a home, it’s likely you have started your search online. Today, there are numerous real estate websites that you can check out. Going through the details and descriptions related to a particular property can give you a better idea about whether you should take a second look at that particular home.

The Next Steps

Once you have shortlisted a few properties, the next step would be to attend open houses, and there are a number of benefits to doing this such as:

• Attending an open house would give you a better idea about the local market and the kinds of homes that are on sale in that particular neighbourhood.
• You would also get a fair understanding about how many people have shown interest in that house.
• Sometimes, you might also be able to have a discussion with the listing agent and get more information about what’s occurring in the local market.
• When you attend multiple open houses in a specific neighbourhood, it will give you a better idea of exactly what you can afford.
• You would be able to get a better understanding of the latest interior design trends. Many sellers get their house professionally staged for a sale and you can ask the listing agent for the contractor or designer’s contact details.

In simple words, if you’re getting ready to buy, it is crucial that you attend a few open houses before you zero-in on a property you think will suit your requirements. However, many prospective homebuyers want to know how many open houses they should attend before they buy. The fact is there is no right answer to this question.

This is because the number of open houses you attend will depend on what the condition of the house was when you actually see it. It isn’t always easy to get a very clear idea about what a house’s appearance and condition is, just by looking at the photographs on online listings.

The Best Way To Stay On Track With Your Home Search

Apart from aesthetic appeal, you should look at the condition of the features and installations on the property. Aside from this, you also need to get a feel of a particular house, check out the neighbourhood, the views from the house and a number of other aspects before you actually decide to buy it.

However, it is also good to set a certain limit on the number of open houses you attend. Be judicious in your search, conduct additional research about a particular property before you actually attend an open house. Going to too many can prove to be overwhelming and confusing, and it may not help you find a house of your choice easily.

Many homebuyers find that, even after they have attended five to six open houses, they eventually circle back to the one that they had initially liked. So staying focused, keeping your budget in view and making note of things you like about a property when you attend open houses will keep you on track and find a great home sooner than later.

Want help finding an open house? Want help finding your next dream home? Get in touch with Gerry Storoschuk, Bonnyville Realtor® today!

While most homebuyers might shun properties that have evident problems, it might be a great opportunity to buy such a home. However, it is important that you know exactly what you are getting into. While many people prefer to buy newer homes that may throw fewer problems, others find older houses alluring.

Many DIY enthusiasts love the idea of buying a fixer upper as they look forward to the idea of fixing paint, adding new features and creating spaces that will be entirely in sync with their preferences. But this isn’t a decision you can take lightly. You would be spending a significant amount of time, money and effort into renovating the house. So the final outcome needs to be worth all of it.

You also need to ensure that you have a clear idea about exactly what kind of repairs, upgrades, and renovations are required in the fixer upper. Sometimes, all this may work out perfectly for you because you may be able to get an excellent property at a very low price. But as mentioned, before you take the plunge, you need to have a realistic idea about exactly what you are getting into.

If You Are Considering Buying A Fixer Upper, Here Are Some Aspects You Need To Keep In View:

Have A Clear Idea About Costs

Start with all the basic calculations. First, add up all the costs required to renovate the property based on a detailed assessment of the current condition of the house. It’s important that you be very objective while making this assessment. Include everything ranging from materials to labor and more.

The next step is to subtract that amount from the likely market value of a property post renovation. They should be drawn after comparing real estate prices in that neighbourhood. Another 5-10% should be factored in towards unforeseen problems or extras that you decide to add, as well as inflation. What’s left from all of this should be your offer price.

Choose Projects That Will Provide Good Return On Investment

When you are deciding to buy a fixer upper, it is best to choose a house that largely requires aesthetic improvements. For example, floor refinishing, drywall repairs, paint touchups or small carpentry jobs would typically cost less than their return on investment.

Other Things To Keep In View

Some other lucrative improvements include addition of window shutters, new siding, replacement of doors and windows, replacing kitchen cabinets etc. If you find that the house has significant structural damage or deterioration, fixing that can cost a significant amount of money, which might not be lucrative in the long term.

Aside from all of these things, take into account the amount of time you have to supervise any work you need to get done. If you are planning on DIY home improvements, make sure that you have the time to dedicate to these tasks. As long as you make a prudent decision after taking all these aspects into account, buying a fixer upper can prove to be a wise decision

If your looking for a fixer upper or trying to find that new dream home, get in touch with Gerry Storoschuk, Bonnyville REALTOR® and find your next home in the Bonnyville area today.