Tuesday 20 November 2012

The costs of buying and selling a home

Saving up for a down payment on your first home can be a long process, and once that goal has been reached, the additional costs to purchase a home are often forgotten. Legal fees, property tax adjustments and interest adjustments are among the most commonly overlooked fees associated with buying or selling a home. In this article from Moneysense, Gail Vaz-Oxlade gives an overview of the costs you should be prepared to pay before signing for your first mortgage.

When buying a home, you will need a lawyer to close the deal. Legal fees will vary depending on the lawyer you choose, so it is a good idea to consult your Mortgage Broker, who will be able to provide recommendations. It also doesn't hurt to shop around a little and compare who charges what. Vaz-Oxlade recommends going to a lawyer who specializes in real estate law, as chances are you will pay less.

For those who are new to the home buying experience, paying a "property tax adjustment" may come as a surprise, but the process is actually quite simple. If the current occupant of the home you are purchasing has paid property taxes for months that you will be living in the house, as the new occupant, you are responsible for paying those back. Your real estate lawyer will take care of the calculations and reimburse the seller.

Follow the link for the full article from Moneysense.

Tuesday 6 November 2012

You and your credit score

When going through the mortgage application process, your lender will need to access your credit file. Your credit file contains a history of what you owe, including credit cards with no outstanding balance. This report is one of the ways a lender will assess if you are a favourable candidate to lend to. So what if an application is denied, citing the applicant's credit report as the reason? In this article, Gail Vaz-Oxlade talks about companies who will offer to fix a less than stellar credit score for a fee, and how more often than not, these are fixes you can do yourself.

It is recommended to check your own credit file every six months to ensure the information contained is correct. You can request a copy of your personal file to be mailed to you at no charge by contacting one of the main credit reporting firms in Canada: Equifax Canada Inc. or Trans Union of Canada Inc. If your file contains erroneous information, simply contact the reporting firm, show proof of the error, and your report will be repaired.

In a case that a credit report is damaged because of late or missed payments, higher than normal balances or financial hardships such as bankruptcy, the only thing that will fix it is time. Paying bills promptly and managing credit wisely over time will repair a damaged credit report. For more hints on controlling your credit rating, talk to a qualified Mortgage Broker.

Click here for the full article from Moneysense.