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        <title>Real Estate Blog</title>
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    <guid>https://www.airdrierealestate.ca/blog/new-construction-homes.html</guid>
    <link>https://www.airdrierealestate.ca/blog/new-construction-homes.html</link>
        <author>justin@justinhavre.com (Justin Havre Real Estate Team)</author>
        <title>Guide to Buying New Construction</title>
    <description> <![CDATA[ 





New construction homes are a good choice for a lot of people, because they can offer value and quality beyond what might be able to be found in homes that were built some time ago. The styles and preferences change over the years, and that affects the way homes are constructed, the kinds of features they have, the size of the rooms, and much more. With that in mind, it is important to understand what new construction has to offer, and the kinds of things a home buyer should look into before they choose a new construction home. With the right options, a new construction home can be an excellent choice.


For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.


Where Will the Home Be Built?


There are generally two options with homes that are new construction. The first one of these options is a home that the buyer contracts with a builder to create from scratch. The second option is the buyer choosing a home that has just been built but that has never yet been sold to anyone or lived in by anyone. This second option often means a planned community, while the first option is more likely to mean a place where the buyer has selected and purchased land. Then they have the home built in that location. Both options can be good choices, depending on a person's individual needs, wants, and goals for their new home.


Who is Building the Home?


Finding the right builder matters. Not every builder has the same types of floor plans, and some builders charge more than others or only build homes in specific areas and neighborhoods. With that in mind, home buyers have to carefully consider where they want to build and which builders provide homes in that location. Then they must narrow down that list of builders by other factors that matter to them such as price, floor plans, amenities, time to build the home, and more. What matters to one buyer may be less important to another one, so it can be important to consider everything from a personal angle.


Are There Additional Costs and Expenses?


For some builders, there are additional costs and fees that come with the price of the home. Homes that are move-in ready are not always what is offered. From cleaning to some of the finishes and other requirements, there may be more that has to be done by the homeowner even after they agree on the price of the home. Because of that, it is very important that any home buyer considers what they are getting and focuses on the true costs of buying the home. The contract price should be for a home that is ready to be moved into. If that is not the case, a home buyer may feel they are paying too much for the house.


How Much Work is the Home Buyer Responsible For?


Prairie Springs home buyers want to be able to rely on their builder to give them what they need. If they have to get permits, arrange for clean- up, and deal with land clearing and a lot of other things, they can quickly start to feel overwhelmed. It is not just about the cost, but also about the work they will be responsible for. If they are required to do less, they may feel much better about the overall process. No matter what home builder they choose, they want to find out what they will have to do throughout the entire process. Then they can move forward with confidence.


For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.


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    <pubDate>Fri, 21 Sep 2018 08:55:00 -0600</pubDate>
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    <guid>https://www.airdrierealestate.ca/blog/lenders-mortgage-insurance-lmi-guide.html</guid>
    <link>https://www.airdrierealestate.ca/blog/lenders-mortgage-insurance-lmi-guide.html</link>
        <author>justin@justinhavre.com (Justin Havre Real Estate Team)</author>
        <title>A Guide to LMI for New Homeowners</title>
    <description> <![CDATA[ 





When it comes to getting a mortgage, there are a lot of things to consider. One of those is how much of a down payment should be offered, or how much of one is actually needed. Fortunately for buyers who have not saved up a lot of money, there are some options for lower down payments. These generally include LMI, or Lender's Mortgage Insurance. This helps reduce the risk for the lender and protect their interest in the property when they loan money to the buyer. But what kinds of things should buyers know about LMI? Here are some of the biggest considerations all buyers want to look at where LMI is concerned.


For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.


What Percentage of a Down Payment Requires LMI?


As a general rule, any mortgage where the buyer offers less than 20 percent of the purchase price as a down payment will have some form of LMI attached to it. However, that is up to the lender, and there is no reason the lender has to require LMI insurance if they choose not to ask for it. Most lender will require it for lower down payment loans, because without it they are greatly raising their risk of financial loss. Not a lot of buyers default on their mortgages, but lenders know that those with a lower down payment are generally at higher risk of that. Hence the reason for LMI.


Lenders Need Financial Protection, Too


Just like buyers have insurance on their homes in order to protect them from financial hardship if something goes wrong, lenders have LMI in order to make sure they do not sustain large financial losses if there is a loss on the home. With 20 percent of the purchase price as a down payment the lender does not have as much risk, so they will not ask the buyer to also pay LMI. When calculating the amount of the payment, the buyer should make sure they include LMI so they understand how much their total monthly mortgage payment will actually be.


How Do Lenders Determine the LMI Cost?


The cost of LMI will be different from one buyer to the next. That is because the lender looks at a number of factors to determine how much of a risk that buyer actually is. Buyers who are lower risk due to their credit profiles and other areas a lender considers will have a lower LMI payment. Higher risk buyers who can still qualify for a loan will pay larger LMI payments. That means their total mortgage payments will be higher than lower risk buyers, all other things being equal. Lenders will explain that to a buyer who asks, and it is important that every buyer ask questions.


There Are Different Ways to Pay LMI


Generally, there are two different ways that a Canals buyer can pay LMI. One of those ways is through adding it to their monthly payment. That is the most common way the insurance is paid, and also the way most lenders prefer. But there is a second way to pay the LMI, and that is through a large, one-time payment at the time of closing. Not all buyers will have the money to do this, and most lenders will not insist on it, but there are some cases where paying it, or at least part of it, at the closing table is required. Buyers should always ask their lender, so they are not surprised by the amount they need to bring to closing.


For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.


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    <pubDate>Fri, 07 Sep 2018 11:02:00 -0600</pubDate>
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