Darlene Strang is the recipient of the 2010 Realtor of the Year award. Despite steep local and national competition, your commitment to customer service and ability to move real estate in Edmonton has made you the top!  Congratulations!!

- The Darlene Strang, Edmonton Condo Team.

Number 1 Realtor in Edmonton 2010 is a post from: Condo Edmonton | Condos Edmonton

See the Original Post Here: Number 1 Realtor in Edmonton 2010 From: Condo Edmonton | Condos Edmonton

Edmonton, October 4, 2010: Housing prices in the Edmonton area remained stable as we enter the final quarter of the year. Single family dwelling prices in September mirrored prices in August and  Edmonton condo prices rose slightly after four months of decline. Both listings and sales declined in September as compared to a month ago.

“The market seems to be resting,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “After the turmoil of the past couple of years and the rush to buy in the early part of the year, it seems that consumers are just sitting back and waiting to see what comes up next.” There are still over 8,600 residential properties in the local inventory and buyers have lots of choice.

The average* price of a single family property was up $472 and sold for $370,653 in September. Condominiums, which have dropped in price for four consecutive months, rallied and sold on average for $238,822 last month. The slightly less than 1% price increase did not reverse drops from a high of $252,728 in April. The duplex/rowhouse average price was down 11% to $313,462 but tends to vary widely from month to month. The residential sale price (which includes all types of residential property) was $326,499; down less than a quarter of a percent from last month.

Residential sales in September were down from the previous month at 1,187 as were listings at 2,668. This sales-to-listing ratio was 47% and the average days-on-market was unchanged at 57 days.

“The third quarter activity was identical to the first quarter this year,” said Westergard. “Typically we see sales dropping from Q2 to Q3 but remaining higher than Q1. This reflects a very active market in the first part of the year which was spurred on by financial incentives and the threat of increasing interest rates.”

For more information or if you have any question please feel free to Contact Us at anytime.  Should you be interested in the market value of your home please our Free Home Evaluation Form.

Thank you.

Edmonton Condo Market: October 2010 is a post from: Condo Edmonton | Condos Edmonton

See the Original Post Here: Edmonton Condo Market: October 2010 From: Condo Edmonton | Condos Edmonton

Benefits of having your home staged include:

• An faster sale: statistics show that on average, a nicely staged home sells in 50-70% less time.
• You may expect an increase in the sale price of your home.  On average staged properties sell for approximately 7-8% more than other homes.  For an example, that would mean an additional $21,000 on a home purchase for $300,000, resulting in a $321,000 sale.
• Improved image and pictures make for a more appealing listing.
• In busier months, when there are several properties in an area for sale, staging may give you an advantage over the competition.
• Nicely decorated and relatively neutral themes tend to appeal to a wider range of buyers.
• It gives the property the feeling of being “well looked after”
• Building inspectors view Staged homes as well cared for as well.
• Staged homes often receive a higher appraisal value.
• The importance of a professional but welcoming appearance.  Remember staged homes can make your property look better in flyers and websites.  Over 80% of prospective Buyers “shop” online before ever contacting a Realtor, which means that homes must show well and be in top selling condition as a necessary first step in creating Buyer interest!

Home Staging is a post from: Condo Edmonton | Condos Edmonton

See the Original Post Here: Home Staging From: Condo Edmonton | Condos Edmonton

What’s the Situation
Ask for the minutes of the condo association board meetings to see what issues or concerns the building and owners may have. Even if there are no complaints, reading the minutes may reveal upcoming levies, repairs and projects.

How Much Is In the Reserve Fund
Ask to see a review of the reserve fund with projections for at least the next five years.  If the condo board has yet to put together a review, find out the amount in the fund and weigh it against any planned projects.  A good rule to follow (though more is always better) is: If the building is 1 to 10 years old, the reserve fund should have 10% of the cost of replaceable items (roof, pool, elevators, etc.). Between 10 and 20 years old, the repair fund should be at 25% to 30%. At 20 years, that amount should be 50% or above.

Insurance
Get a copy of the building insurance policy.  First see if the replacement costs covered by the policy are an accurate estimate of the cost of rebuilding. Then make sure that the policy has a building-ordinance clause, which means that the insurance will cover the cost of bringing the building up to code if there is any rebuilding to be done. On older buildings, there may have been many code upgrades since the time of construction. Finally, make sure that you understand exactly what the association policy covers and what you are responsible for. The smart condo owner will insure his or her personal belongings, along with any other items within the unit that are not covered by the association’s policy.

Bylaws
Bylaws are the rules of the building and are set by the condo board. Don’t be caught by surprise when you go to move in and you find out that the building doesn’t allow animals or children.  Read over the bylaws and make sure you are comfortable with the way the building is regulated.

Renters
If you’ve purchased a condo as an investment property with the intention of renting it out, check to make sure what bylaws and restrictions the building may have.  Typically if a building has a renter’s population that is over 10% there should be specific policies already in place.

Check out  More Great Condo News and Advice here at Condos Edmonton.

Things to Look at When Buying a Condo is a post from: Condo Edmonton | Condos Edmonton

See the Original Post Here: Things to Look at When Buying a Condo From: Condo Edmonton | Condos Edmonton

When is Refinancing an Option: Remortgaging or Home refinancing is done when you have a mortgage on your home and apply for a second loan to pay off the first one (remortgage). Before making the decision to pursue home refinancing, it  is important to calculate whether the amount you’ll be saving on interests balances the amount that you’ll have to pay in fees for refinancing.  How many times can you refinance a mortgage?  Put simply, you can refinance as many times as your debt to income ratio can handle. If your debt exceeds over 50% of what you make then chance are you won’t be able to refinance, otherwise it will typically go through.

Let’s take a look at some of the benefits of refinancing and lastly when remortgaging your home is a bad idea (do’s and don’ts listed below):

Low Refinance Rate, Lower Mortgage Payments

The financial environment and your credit rating dictate your mortgage interest rates. While certain factors, like your credit rating and the amount of the down payment that you were able to afford, influenced your interest rate, the single most important factor was the mortgage interest rates at the time of your mortgage. The up side (or down, depending on how you choose to look at it) is that interest rates fluctuate. In fact, refinancing rates may become significantly lower than what you originally looked into. Now if you were refinancing your mortgage when interest rates are lower, you can exchange a higher interest rate for a lower one, which would lower your monthly mortgage payment.

Remortgaging can Shorten the Length of Your Mortgage

In short when you remortgage your home through refinancing you can shorten the term of your mortgage. If, for instance, you started off with a 35 year mortgage and you remortgage with a 20 year mortgage you’ve shaved off 15 years (give or take).

Home Refinancing Benefits

Remortgaging can give you access to extra cash, while simultaneously lowering your monthly mortgage payment. Hard to believe, however with proper refinancing it is a very real and likely out come through mortgage refinancing.

Typically a home is one of the largest assets you’ll own. Unfortunately the mortgage payment is also the largest expense you’ll have month to month. Remortgages have become popular as a way to use this asset to reduce the monthly payment and put extra money aside. When you refinance your mortgage, you can take advantage of the equity in your home, and if put to use wisely, you will benefit from the remortgage.

Remortgage and Gain Access to Extra Cash

Cash out refinancing is another way to put some extra money in your pockets. Basically, what you do is tap the equity that has built up in your home. This is called cash out refinancing. If you needed some extra cash out of your equity you may refinance for an amount higher than your current principal balance and take the extra funds as cash.

Current Mortgage Refinance Rates:

Loan Type Today +/- 30 Year Fixed Refi 4.91% 15 Year Fixed Refi 4.73% 5/1 ARM Refi 4.90%

Mortgage Refinancing Do’s and Don’ts

Remortgage Do’s:

• Always spend some time shopping for the best rate (look for rates online and locally). Keep in mind that even a small change in your loans interest rates can save you a lot of money.

• Remember, you are still applying for credit so start looking at ways to boost your credit score at least three month prior to your application. Not only will a higher credit score greatly increase your chances of being approved, but it will also secure a much better rate.

• Get the market value of your home. If need be get an appraisal done. This helps both to know where you stand and the lender will likely ask for it, so best to be prepared.

• Make a budget! It’s great to be able to free up some of the equity you’ve built up in your home but without a solid plan for what you are going to do with said money you may be tempted to spend it frivolously and end up with nothing to show for it. Again, MAKE A BUDGET. Thank you.

Remortgage Don’ts

• Please, if you think you can bail yourself out of a bad financial situation by refinancing the roof over your head… DON’T. It is rare that such a decision works out in your favor. Now, if you are bent on pursue that particular course of action do yourself a favor and consult a mortgage refinancing professional.

• Desperation is very unattractive, so don’t take the first offer. Take some time, put some effort into it, and you’ll be rewarded with a good offer. Lenders are able to hold offers for at least 90 days so you’ll have the time to shop around.

• Only consider refinancing your property if you intend on living there for at least 5 more years minimum. You’ll eat up the bulk of your money in fees should you decided to move before then.

• Don’t assume that you or your friends/family (unless they are professionals in the remortgaging industry) know what is best . Seek the advice of a specialist. A mortgage refinancing professional should not try and sell you on the idea or product but give you advice on the best course of action given your situation.

Do your research and speak to a remortgage and refinancing professional.  For advice or to buy/sell  condos in Edmonton Alberta contact Darlene Strang.

Mortgage Refinancing is a post from: Condo Edmonton | Condos Edmonton

See the Original Post Here: Mortgage Refinancing From: Condo Edmonton | Condos Edmonton

What are Mortgage Brokers? Mortgage brokers are trained professionals that have to meet a satisfactory educational requirement before they may become registered. As such, this requirement ensures you are being provided with a duty of care, a working knowledge of mortgage products and a standard of service to meet individual needs.

What mortgage brokers can do for you:  Here are some of the services your mortgage broker can do for you: They can qualify you for your mortgage and have it approved in a day or less, offer advice and an unbiased opinion on mortgage types and other related products, go through a multitude of lenders in a fraction of the time it would take anyone else to get you the best rates and hopefully a good deal as well.

Info You Need To Provide: You are going to have to give your mortgage broker some of your personal information so they can get the best quotes from the lending institutions they work with.  Information you’ll have to provide includes: Total income and net worth, they will need to pull your credit report, amount of down deposit and your amount of debts.

What happens Next:

After your application is finalized your broker will be able to tell you which lender will best suite your needs.  With the network of lenders at their disposal your mortgage broker will be able to obtain discounted rates that are hard for anyone else to find.

For more mortgage advice or if you are in the market to buy or sell your home consult Edmonton’s top Realtor Darlene Strang.

Mortgage Brokers Clarified is a post from: Condo Edmonton | Condos Edmonton

See the Original Post Here: Mortgage Brokers Clarified From: Condo Edmonton | Condos Edmonton

Step one: Time to start shopping around for a mortgage that meets your needs. At this point you may want to familiarize yourself with as many different types of loans as you can, and then compare what the lenders are offering (i.e.: what are the terms and conditions, what interest rate are they offering, what type of mortgages are they offering etc.).

Step two: Beginning the application process by pre-qualifying for the mortgage (get a mortgage quote) /home you have in mind. Granted this is an optional step however it will give an accurate idea of the price range you should be looking at and you have the added bonus of securing an interest rate. Pre-qualifying for a mortgage is simple, all you need to do is provide basic information about your self and finances (typically information regarding your employment, income, debt ratio: 35-40% the less debt the better, and of course the all mighty credit report: you’ll want your credit score to be 640 and up). With that information in hand the lender will be able to tell you whether or not you will qualify for a mortgage with them as well the amount they would be willing to grant you. Please note that just because you have the document stating you’ve been pre-qualified for a mortgage does not guarantee that you’ll get it until the lender is able to verify your information.

Step three: Once you’ve found your knew property it is time to apply for the actual mortgage and start the paperwork. At this point you will have to provide the necessary documentation (letters of employment etc) to your mortgage lender (the bank or another mortgage institution) and fill out an application. This is what is referred to as underwriting. Now your application may do one of three things: it meets all the lenders criteria is approved (by far the best), it may come back and be approved but with conditions (they may ask for additional documentation at which point it will be resubmitted), and last and certainly least the lender may deny the application.

Step four: Referred to as a settlement. The documents are prepared by lawyers and you must sign all of the necessary documents. Once that has been completed you then legally own the property and owe the lender the amount of mortgage loan.

After everything is said and done: Now (unfortunately) comes the time where you have to start repaying your lender by making mortgage payments either in monthly, bi-monthly or weekly typically consisting of principal, interest, and the other expenses included in your mortgage payment (taxes and insurance) known as escrows. This is also referred to as servicing.

That in a nut shell is the process if getting a mortgage. You start by looking around for a home and the lender finishes by servicing the mortgage loan. To reiterate, servicing a loan is when the lender collects payments of the principal and interest as well as escrows for taxes and insurance, they manage escrow accounts, and manage the client’s mortgage accounts.

The Mortgage Lending Process is a post from: Condo Edmonton | Condos Edmonton

See the Original Post Here: The Mortgage Lending Process From: Condo Edmonton | Condos Edmonton

When writing up an offer there are a few points to consider such as: How much will you offer for the home? Do you have any terms or conditions that the seller must meet? How much money are you willing to put down on good faith (this is called earnest money)?  Let’s look at these questions in more depth to make sure you make the best decision in preparing your offer.

How much will you offer for the home?

Maybe you don’t like to negotiate or the seller is asking a fair price otherwise you have to consider how much you are willing to spend on the purchase of the property.  If the market is booming you may not have a choice however it is rare to pay the asking price. Exception to this rule include: situations where two parties want the property and start a bidding war,  there are previous offers pending on the home, or you accept the asking price because the seller will cover other costs usually covered by the buyer, like closing costs.

Keep the following in mind: how much you can afford, do you have any competition for the property, why is the seller selling, do you need to spend any more money on repairs or renovation to the home, is the price competitive with the market, and of course…how much do you want the property.

Placing terms and condition on an offer:

It is important to note that once you place conditions on an offer they must be met, otherwise you are not bound to the offer.  Common conditions include: your ability to obtain mortgage financing (this is a must as if left out you stand to lose your deposit).  Get a home inspection and report done on the property, if you don’t and miss something like a bad foundation you’re in for a nasty and expensive surprise.  Once  the inspection is complete and you’ve read the report carefully you can make an informed decision whether you should add any further conditions or ask the seller to make the repairs if any.  Your real estate agent will help you with any other terms or conditions they feel you should add to your offer.

Putting money down on the property is a sign of good faith and is a way of securing your offer on the home. When you submit an offer, be prepared to make a deposit.  The deposit is put toward the amount you’ve agreed to pay for the home in your offer.  If your offer isn’t accepted or the terms aren’t met the deposit is returned to you.

In most cases people are not in a big hurry to sell their homes so it is up to you (as the buyer) to make a good impression.  It is in your best interest to let the seller know you’re serious by: Being pre-approved for a mortgage from a financial institution or another lender.  Having the prequalification for the home loan at X amount of dollars prepared for when you put in your offer will let the other party know you’re not wasting anyone’s time.  Note: you may want to keep the amount you’ve been pre-approved for under wraps until you’ve come to a decision regarding the amount you’re willing to offer; after which time you can go to your mortgage lender and get the document stating you will have no problem with following through on your offer to buy.  That way the seller never needs to know that you may have been approved for more.

Now after all the work of finding a property that suits you and making that leap to organize and submit your offer comes quite possibly the most nerve racking part if the process.  Once your offer is in, the seller will have a chance to review your offer and decided whether or not to accept it.  Don’t be surprised if the seller counteroffers.  Understand counteroffers are not always about the money (although, more often than not, it is) it may be in relation to the terms and conditions laid out in your offer.  You’ll have to decide where to draw the line, what you are willing to accept and how much you are willing to pay period.   Be prepared to go back and forth until both parties are content (if you dislike negotiating, make sure you have a professional on-board).  Keep in mind if the seller does counteroffer you have the ability to reject the offer at which point the deal is either off or the seller will try to compromise (it is however best to attempt to find a solution that meets both of your needs; after all, if you’ve placed an offer down to buy a home you must like it enough to be a little flexible).  With a bit of luck and perhaps a tweak here and there your offer will be accepted and both you and the seller will be happy.  Which means it is time to go back to your mortgage lender and finalize your financing.

That essentially covers how to make an offer, as I have said several times, unless you are a professional make sure you have a licensed pro that can help and guide you through the process (it’ll just make everyone’s life so much easier).  Good luck with your offer and new home.  For Edmonton’s top Realtor and Edmonton Condo expert contact Dralene Strang, your personal Realtor for life, Here.

Preparing Your Offer to Buy is a post from: Condo Edmonton | Condos Edmonton

See the Original Post Here: Preparing Your Offer to Buy From: Condo Edmonton | Condos Edmonton

Okay so what is credit?

There are several definitions of credit, however for our purposes credit can be summed up as: The amount of trust you have with credit lenders?  When you apply for a loan (for a mortgage for instance) one of the first things a lender will do is pull up your credit report.  If you are in good standing the lender will often award you the loan and lower interest rate.

How do you build credit?

Credit is built by slowly establishing trust with financial institutions and lenders. The most common way of establishing credit is through the use of a credit card (Visa, Master Card, American Express etc.).  You establish a good rating by making at least the minimum payment due and paying all your bills on time.

Who keeps track of my credit score and how is it calculated?

Your financial intuition/lender keeps a very close eye on your spending and repayment habits and sends the information to a credit bureau like Equifax on a monthly basis to be calculated into your overall credit rating.  Your credit score is based on several factors such as:

• How much you owe on debt, like loans or credit cards. Mortgages are not taken into account.
• Your payment history, do you pay bills on time?
• How many times in the last x amount of months have you applied for credit?
• Have you ever been send to a collections agency and why in the past 7 years?

The credit bureau will plug the information into a formula that will generate a value that tells a potential lender how much of a risk you are.  A lender looks at the credit score and figures out whether it would be wise of them to lend you money.  FICO (developed by Fair, Isaac and Company, the pioneer of credit scoring) is a widely used scale number system between 300 and 900. A FICO score is a snapshot of your credit risk at that point in time. The higher your credit score the more likely you are to be approved for loans and receive better rates.

Are there any other factors that affect my chances of qualifying for a loan?

Your credit score is a large component of a lenders decision process however there is more that they will evaluate.  When you apply for a mortgage a lender will look at your income and earning potential, the relationship you have with that particular lender, the amount or percentage of your down payment, investments etc.  Over all a mortgage lender will look at your ability to repay the loan.

How does my credit impact my mortgage application versus other kinds of loans?

Though your credit will play a role in determining the amount of the mortgage and the interest rate (the bigger the mortgage the more important it is to have a good credit rating to get a good interest rate) your lender (as stated above) will look at a variety of factors before awarding you a mortgage.  When applying for other types of loans, your credit score takes on much more weight and can be, at times, the only thing a lender will look at, making a good rating even more important.

How to improve your credit score

You can improve your score a number of ways:

• Make sure the information contained on your credit report is accurate and up to date (it’s very easy to order a copy of you report from Equifax).
• Don’t apply for credit at least three months (90 days) before you apply for a mortgage or loan. You can raise your score by 10% by doing this.
• Most importantly, pay all your bills on time (if your planning on applying for a mortgage make sure you have a glowing payment history six months prior to applying)
• Obviously if you have anything in collections get it paid and taken off a.s.a.p.
• Make a few extra payments to any credit products you may have (credit cards, loans etc.) and try to get the balance down (it looks better in the eyes of your lender and will help your debt to income ratio)

By following this simple guide line you can raise your credit score significantly over the course of a year and be in good standing when applying for a mortgage.

Final note:

Don’t fixate and worry too much about your credit. Even if you don’t have the best track record in paying your bills on time or have had a few things sent to collections.  There is little you can do your credit that can’t be undone or mitigated.  Follow the steps listed above to get on track and raise your score and besides that relax! Far too many people are so worked up about their credit scores and reports that they lose sleep over it.  Credit isn’t a big mystery…..just pay the minimum due on time and your good to go.

For more on real estate news and advice or to partner with Edmonton’s top Realtor Darlene Strang Condo Edmonton specialist, feel free to browse the site or contact Darlene Here.

Credit Ratings and Mortgages is a post from: Condo Edmonton | Condos Edmonton

See the Original Post Here: Credit Ratings and Mortgages From: Condo Edmonton | Condos Edmonton

Thank you.

Free Home Evaluation is a post from: Condo Edmonton | Condos Edmonton

See the Original Post Here: Free Home Evaluation From: Condo Edmonton | Condos Edmonton