6. February 2012 10:27
There are so many mortgage options out there for every one, the question is, where do you start? Do you visit your local bank or credit union or do you consult with a mortgage broker. The answer is not the same for every one. Like every other profession, not all bankers or brokers are created equal. Getting information to help you ask questions before you start looking may save you Thousands of after Tax Dollars. Here is some great information to help you. Have you been having trouble finding the perfect house? Did you know that you can purchase a home and get a mortgage for the house and for the improvements you want to make to the house? This is known as a Purchase plus Improvements Mortgage. With this type of mortgage you can make planned renovations, and have the cost included in the mortgage. This can be achieved provided you use it for items that improve the value that cannot be removed from the home. For example: garage, paint, flooring, kitchen, bathroom, and/or windows can be included. Furniture, appliances, and window coverings cannot. This option is available with as little as 5% down payment. How does it work? With an accepted offer and quotes for the improvements the mortgage insurer will determine if the planned work will increase the value of the home by a comparable amount as the renovation costs. For example: If you buy a $300,000 home and add a garage for $20000, will the home be worth $320,000? In most cases smaller renovation projects can be value assessed through the CMHC evaluation program. For larger, costlier projects an appraisal may be required. The client will have 60-120 days to complete their renovation. When they are finished they present their receipts or outstanding invoices to be reimbursed. Generally in smaller projects the receipts are all that is needed. In mid to large projects, an inspection may be required. Another option available in the mortgage world is a Free Down Payment Program. This program is designed as a product for clients that qualify for a mortgage except that do not have the required down payment. Here is a great example, a consumer with excellent job stability, excellent income and good credit...but not enough savings. The benefit to the client is: rather than wait and save the 5% down payment, they can buy a home sooner by getting the down payment from the bank. The client will only be responsible for the closing costs; this is usually 1.5% - 2% of the purchase price. The only condition the lender makes in exchange for receiving the 5% down payment from the bank; the client is required to take a 5 year, fixed rate, closed mortgage at the posted rate (no discounts). I have great lender contacts that are committed to working in the best interest of my/their clients. Email me anytime at firstname.lastname@example.org and I can steer you in the right direction to save Thousands of After Tax Dollars. A High Level of Service is Not Expensive..It’s Priceless!
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