Buying your first home is a thrilling milestone, but it requires careful financial planning to ensure you’re ready to make that big investment. Here are seven tips to help you get started this fall:

1. Set a Realistic Budget:  Calculate your total monthly expenses, considering mortgage payments, property taxes, and utilities. Aim to spend no more than 30% of your monthly income on housing.

2. Save for a Down Payment: Typically, a 20% down payment is recommended to avoid mortgage insurance, but even 5-10% can get you started. Explore options like the FHSA or the RRSP Home Buyers’ Plan to boost your savings 

3. Reduce Debt: High levels of debt can affect your mortgage approval. Pay off or reduce outstanding credit card balances before applying for a mortgage.

4. Improve Your Credit Score: A higher credit score can lead to better mortgage terms. Check your credit report for any errors and make timely payments to boost your score.

5. Build an Emergency Fund: High levels of debt can affect your mortgage approval. Pay off or reduce outstanding credit card balances before applying for a mortgage.

6. Get Pre-Approved: A mortgage pre-approval gives you a clear idea of how much you can afford and strengthens your offer.

7. Consult a Mortgage Professional: Guidance from an expert ensures you are on the right track and prepared for your home purchase.

Any question, reach out!

Kristin Delgado

Purchasing a home is a significant financial milestone. Several factors influence home affordability, including income, credit score, and debt-to-income ratio (DTI).

Income: Lenders evaluate gross income, employment history, and income stability. Gross income refers to total earnings before deductions, while net income is the take-home pay. Key documents for income verification include pay stubs and tax returns.

Credit Score: Ranging from 300 to 850, a credit score indicates creditworthiness. A higher score typically results in better mortgage terms. Factors affecting credit scores include payment history, credit utilization, length of credit history, new credit inquiries, and credit mix.

Debt Service Ratios: Lenders assess Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine financial health. GDS ratio, which should be below 39%, measures housing costs against income, while TDS ratio, which should be below 44%, includes all debt obligations.

Improvement Tips: Enhancing income, maintaining a good credit score, and managing debts effectively can significantly improve home affordability. Stabilizing employment, reducing debt, paying bills on time, and avoiding new debts before applying for a mortgage are practical strategies.

Ready to turn your homeownership dreams into reality? Contact me today to explore your mortgage and real estate options and get personalized guidance. Together, we'll navigate the path to finding your perfect home. Start your journey now!

Kristin Delgado

5 Tips for Enjoying a Budget-Friendly Summer Vacation

Planning a summer vacation is an exciting endeavor, but it can also come with a hefty price tag. However, you can still have an amazing time without breaking the bank. Here are the top 5 tips for taking a budget-friendly summer vacation that will help you save money while enjoying every moment:

 1. Plan Ahead and Save Year-Round: Incorporate vacation savings into your annual budget and cut back on unnecessary spending.

 2. Maximize Credit Card Reward Points: Use credit cards that offer points redeemable for travel expenses, such as flights and hotels.

3. Find the Cheapest Flights: Be flexible with travel dates, use flight comparison tools, look for budget airlines, consider connecting flights, and book in advance.

4. Opt for Affordable Accommodations: Choose budget-friendly options like hostels or Airbnb rentals instead of hotels.

5. Enjoy Free Activities: Take advantage of free activities like walking tours, parks, beaches, museums, hiking, and community events.

By following these tips, you can have an enjoyable vacation without overspending.

Tips on Protecting Your Investment

If you’re looking to buy a property for the short-term, the following are a few extra considerations you should keep in mind to find a house that meets your needs now, while protecting your investment when it comes time to sell.

Firstly, location is vital. opt for homes in urban areas near amenities, which are easier to sell and maintain their value. Avoid properties on busy streets and those lacking a sunny disposition.

The type and age of the home matter too. Newer homes or those with recent major upgrades are more appealing and less costly in maintenance. Aim for at least three bedrooms and two bathrooms to attract a broader audience.

Consider the necessity and cost of renovations. Focus on improvements that add value, like updates to the kitchen, bathrooms, and exterior. Regular maintenance and cleaning are essential to preserve the home's appeal.

Pay attention to the local real estate market dynamics, including average days on market and upcoming neighborhood developments. Unusual features may limit your pool of buyers, so weigh the uniqueness of a property against its marketability.

A REALTOR® can be invaluable in navigating these considerations, especially with laws like British Columbia's "home-flipping" tax, ensuring you make informed decisions that protect and potentially enhance your investment.

Kristin Delgado