New Year – New Home….Renovate or reorganize?
Marci • February 6, 2012
Is there enough room in this house?
While Christmas is now a distant memory, quite often the act of trying to store the decorations or find the perfect spot for that Boxing Day purchase, leads to the question:
– How do I make all this stuff fit? –
Let’s pretend that over the holiday season, you bought a rolling island you love, but don’t have a “place” for in the kitchen; plus you also decided to go with an artificial tree, but there is no room to store it in the garage.
Certainly, you could buy a home with a larger kitchen and more storage, or you could renovate, possibly adding on; then there is the third thought that reorganizing could open up the room you need.
Start by assessing your situation. Do you love your house? The neighbourhood? Other than the kitchen and storage, doe the house meet your needs?
If you answered no to these questions, it’s time to do a financial review to see what the implications of moving to a different house will be. Will the current market work in your favour or will you need to adapt to a larger mortgage? I can help you assess your options in terms of moving up.
If the pots stopped fitting in the cupboard a year ago, the floor is peeling up and you have to bang the stove fan to make it work, it isn’t just about that new island you bought – it’s about the kitchen as a whole. If you love your home, but have been feeling cramped or in need of a change, a renovation may be the answer. Consider if the major disruption is something you can handle – it isn’t for everyone.
I can help with a HELOC or other refinancing options to make a renovation possible if this is the right choice. Learn more about HELOC
products here.
If it is just storing the artificial tree and the island that are causing issues, you may be able to reorganize to find the space you need. I can recommend some great organizing professionals and home stagers to look at the space you have.
You need to look at the reality of the situation, the financial and emotional aspects as well as the short and long term benefits to determine the best way to find the space you need. Let me know if I can help.
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Chances are, buying a home is one of the most important financial decisions you’ll make in your life. And as mortgage financing can be somewhat confusing at the best of times, to alleviate some of the stress and to ensure your home purchase goes as smoothly as possible, here are six very high-level steps you should follow. While it might seem like the best place to start the home buying process is to browse MLS on your phone and then contact a Realtor to go out and look at properties, it’s not. First, you’re going to want to work with a licensed independent mortgage professional. When you work with an independent mortgage professional, instead of working with a single bank, you’ll be working with someone who has your best interest in mind and can present you with mortgage options from several financial institutions. The second step in the home buying process is to put together a mortgage plan. Unless you have enough money in the bank to buy a home with cash, you’re going to need a mortgage. And as mortgage financing can be challenging and not so straightforward, the best time to start planning for a mortgage is right now. Don’t make another move until you discuss your financial situation with an independent mortgage professional. It’s never too early to start planning. As part of your mortgage plan, you’ll want to figure out what you can afford on paper, assess your credit score, run some financial scenarios, calculate mortgage payments, and have a clear picture of exactly how much money is required for a downpayment and closing costs. You’ll also be able to discuss which mortgage product is best for you, considering different mortgage terms, types, amortizations, and features. Now, what you qualify to borrow on paper doesn’t necessarily mean you can actually afford the payments in real life. You need to consider your lifestyle and what you spend your money on. Understanding your cash flow is the key. Make a budget to verify you can actually afford your proposed mortgage payments and that you have enough funds to close on the mortgage. No one wants to be house-poor or left scrambling to come up with funds to close at the last minute. If everything looks good at this point, the next step will be to get a preapproval in place. Now, a pre-approval is more than just typing some numbers into a form or online calculator; you need to complete a mortgage application and submit all the documents requested by your mortgage professional. Only proceed with looking at properties when you’ve been given the green light from your mortgage professional. When you’ve found a property to purchase, you’ll work very closely with your mortgage professional to arrange mortgage financing in a short period of time. This is where being prepared pays off. As you’ve already collected and submitted many documents upfront during the preapproval process, you should be set up for success. However, remain flexible and provide any additional documentation required by the lender to secure mortgage financing. Once you have firm lender approval and you’ve removed conditions on the purchase agreement, don’t change anything about your financial situation until you have the keys. Don’t quit your job, don’t take out a new loan, or don’t make a large withdrawal from your bank account. Put your life into a holding pattern until you take possession of your new home. So there you have it, six steps to ensuring a smooth home purchase: Work with an independent mortgage professional. Put together a mortgage plan. Figure out what you can actually afford. Get a pre-approval. Provide the necessary documentation. Don’t change anything about your financial situation until you take possession. If you’d like to discuss your personal financial situation and find the best mortgage product for you, let’s work together. We can figure out a plan to buy a home as stress-free as possible. Please connect anytime; it would be a pleasure to work with you.
LET'S TALK
MARCI DEANE
MORTGAGE BROKER
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The first step is to start a conversation with me.
