Langley BC Real Estate | Condominums And Town Homes

Getting a mortgage loan can be a stressful experience when buying a house. There are a number of situations where mistakes can and frequently do occur. Mistakes made in the mortgage process can cause everything from minor annoyances to financial disasters. Hence, the potential for these mistakes should be taken very seriously. Here are the common mortgage mistakes you should avoid.

Not doing enough research
Not all mortgages are the same. And there are a number of state-sponsored buyer programs and incentives available. Do as much homework as possible comparing rates, points and styles of loan before actually applying for a mortgage.

Taking on too much mortgage
This is one of the costliest mistakes made by most buyers. Several borrowers allow too much leeway in their loan guidelines. Consider limiting your housing costs - mortgage payments, property taxes and homeowners insurance to around 25% of your gross income.

Choosing the wrong mortgage
Quite often buyers find themselves stuck with wrong mortgages, generally choosing mortgage on interest rates. The key to selecting the right mortgage is to find the loan that fits your personal budget and situation, rather than trying to have your budget and situation conform to the mortgage.

Calculating the wrong ratio
Your total mortgage payment (including principal, interest, taxes and all insurances) should not total more than around 28% of your monthly gross income. Your total debt load, including the mortgage payment and other debts (car loans, personal loans, credit card payments, etc) should be no more than 36% of your total monthly gross income. Many mortgage lenders approve household debt ratios in excess of 50% of income thereby increasing the debt load on the borrower.

Not getting pre-approved
Many first-time borrowers confuse being “pre-qualified” with being “pre-approved.” Pre-qualification is a quick credit check based on the information provided by the individual. A pre-approval, however, means a mortgage professional has checked the employment history, verified funds and studied an individual’s credit record. Getting pre-approved rather than pre-qualified saves a lot of headache. It will also give you more bargaining power when making an offer.

Not planning for closing costs
Closing costs are the expenses incurred when purchasing a home. These typically include attorneys’ fees, taxes, title insurance, prepaid homeowners insurance, points and other lenders’ fees. And can amount to between 2% and 7% of the selling price. Plan for closing costs by getting a good-faith estimate from your lender as early in the loan process as possible.

Not getting a lock-in rate in writing
Get a written statement detailing the interest rate, the length of the rate lock and additional details of the loan before proceeding with your purchase. It won’t help you at closing if the rate has changed and you have no written proof of the previous arrangement.

“Should we sell first or buy first?” Homeowners who are planning to move up or downsize often wrestle with this dilemma. Although your decision depends on the current market condition and personal motivation, it is smart to sell before you buy.

Better Financial control
Selling your home before buying a new one minimizes financial risks. You would have a better idea about the house you can afford. This will help keep you from over extending your mortgage abilities. Finding temporary housing is generally cheaper than two mortgages. Moreover, if you buy first in the current market, you may end up in a cash crunch.

Better Negotiation position
Selling first provides you the luxury of time. You are not compelled to take the first offer that comes along. And free to hold out for best price. By buying first, you can end up taking less then what you could just so you can move forward on the new place.

Better Selling Price
Buyers often try to seek out desperate sellers. Sellers who aren’t under pressure to sell often obtain a better selling price.

Cash leverage
Buying before selling can lead to delays and financing issues. A contingency clause may protect you from being stuck with two homes but does not make you an attractive buyer. Having cash from the sale gives you bargaining leverage. You may also be able to negotiate price reductions.

Being without a home is the biggest fear of selling before you’ve purchased a new one. But experts agree that the advantages out-weigh the disadvantages. Selling and buying a home at the same time is a daunting task. You may find your dream home more affordable than anticipated, but selling your current home is the current market condition may not be easy.

VANCOUVER, B.C. - May 4, 2009 - With more buyers and fewer homes for sale in recent months, the Greater Vancouver housing market has entered a more moderate and balanced state.

For the sixth consecutive month, new listings for detached, attached and apartment properties declined in Greater Vancouver, down 33.7 per cent to 4,649 in April 2009 compared to April 2008, when 7,010 new units were listed. The total number of property listings on the Multiple Listing Service® (MLS®), while slightly down compared to last month, remains unchanged compared to the same period in 2008.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 2,963 in April 2009, a decline of eight per cent from the 3,218 sales recorded in April 2008, and an increase of 31 per cent compared to last month.

“We’re seeing greater balance in the housing market, as evidenced by a strong sales to active listings ratio of over 19 per cent,” Scott Russell, REBGV president said. “The result is a relatively stable market in which homes are being realistically priced.”

“The bridge between buyer demand and housing supply is continuing to narrow, which, as we see, helps bring stability to home prices,” he said. “The trends in our housing market over the last couple of months offer a much more comfortable, historically normal set of conditions.”

Sales of detached properties declined eight per cent to 1,190 from the 1,293 detached sales recorded during the same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties declined 12.2 per cent from April 2008 to $675,268.

Sales of apartment properties in April 2009 declined 10.5 per cent to 1,179, compared to 1,317 sales in April 2008. The benchmark price of an apartment property declined 12.6 per cent from April 2008 to $340,203.

Attached property sales in April 2009 are down 2.3 per cent to 594, compared with the 608 sales in April 2008. The benchmark price of an attached unit decreased 9.7 per cent between April 2008 and 2009 to $431,759.

For Immediate Release: May 4, 2009

(Surrey, BC) – The Fraser Valley real estate market continued to show signs of rebalancing in April with the number of sales increasing for the third month in a row while the volume of available properties stayed constant. Benchmark prices for detached homes and condominiums also showed increases over the last three months.

There were 1,293 sales processed on the Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) in April, reflecting a 28 per cent decrease compared to the 1,787 sales in April of last year, however, a 29 per cent increase over March sales. At the same time, the Board received 44 per cent fewer new listings compared to one year ago, 2,477 in contrast to 4,458 in April 2008, helping to stabilize the number of active listings in the Fraser Valley at 9,855.

Paul Penner, President of the Board, says current conditions have created one of the best buying opportunities in years. “REALTORS® have successfully communicated to their sellers to be more realistic with their prices, which is why we’ve seen a 29 per cent increase in sales from March to April.”

Penner also attributes the increase to all-time historically low interest rates and still relatively high inventory for Fraser Valley, although it is dropping rapidly.

“In April, REALTORS® received 44 per cent fewer new listings compared to a year ago and 18 per cent less than we received in March. When supply and demand start to balance out, the effect is that prices begin to fi rm up and that’s exactly what we’re seeing.”

Residential benchmark prices, the value of a ‘typical’ Fraser Valley detached home as determined by the MLSLink® Housing Price Index (HPI), decreased 10.4 per cent compared to April 2008. However, it has increased by 1.8 percent over the last three months. The benchmark price was $460,229 in April 2009 compared to $513,403 last year.

The HPI benchmark price of Fraser Valley townhouses decreased 11.6 per cent from $333,982 in April 2008 to $295,078 in April 2009. That decrease, however, slowed to 0.1 per cent during the last three months. The benchmark price of apartments also decreased year-over-year by 11.4 per cent going from $260,037 in April of last year to $230,337 in April 2009. Similar to detached homes, the benchmark price for apartments has increased by 4.4 per cent over the last three months.