Archive for category General Business
Read Before Signing: Why your Signature could spell Disaster
Posted by Top Home Loans in General Business, Mortgage Advice on November 10th, 2009
A young couple was once out to purchase there first house together. They both had recently graduated from university, and had started there first jobs after graduating. After several months of renting, they were ready to purchase there first home together, but where to start. A mortgage seemed like a challenge, and they didn’t have all the knowledge to do it on there own.
The first step, they thought, is to search for a house in the local real estate magazines. Once they found a property they were interested in, then they contacted the realtor who was pictured with the property. The realtor was very eager to talk with the couple; unfortunately, the house they had been interested was already sold, but the realtor assured the couple that there were better houses available.
The first signature occurred when they first met with the real estate agent, and they signed the exclusivity agreement. This meant to the client that they have a real estate agent that will work for them. They began visiting many different properties in search for a location that they could call home.
Finally, after several weekends looking, they found a house that would suit there needs. The realtor asked them how much they were willing to paying. The realtor had negotiated a price that was slightly less than there maximum but it was still within budget.
They had signed all the paperwork, and everything was confirmed. They extremely excited to move into there new home when the re estate agent asked ‘who is your mortgage approved with?’. The young couple had not even thought about the mortgage. They had figured that the real estate agent would take care of this for them; however, they didn’t know that they had to do it on there own. They contacted the bank they did business with since they were young to discuss there options. The young couple setup an application, and they were advised of a list of documents that they would need to provide for the approval.
They worked diligently to collect all the items that the bank had requested to get the mortgage approved, and when they thought they were almost ready to go, the bank phoned them.
“Hello, we regret to inform you that we cannot proceed with your mortgage application. We discovered some collections in your credit history, and we cannot proceed with your application.”
Upset, but not fully deflated, the couple tried applying at multiple banks; however, they kept receiving the same result:mortgage declined. They finally came to the conclusion that they were not ready to get a mortgage. They called there real estate agent to advise him that they had to cancel the contract for purchasing that house; however, when they called the real estate agent there worst nightmare happened.
“What do you mean you can’t get approved for a mortgage? I thought you said you were ready to buy a house. When you made an offer, you said you wanted to make a firm offer, right? Do you know what a firm offer means?”
The couple had no idea what they had got themselves into. In the excitement of purchasing a house, they overlooked all the details to do so. The exit clause on the purchase agreement costs the clients not only there deposit, but also the expenses incurred by the client for them not proceeding.
To escape the contract, it ended up costing them 10% of the purchase price of the property and they got off easy. In most cases someone could get sued for tens of thousands of dollars.
The moral of the story is that mortgages are not something to be taken lightly. Read and understand every line before signing and hire good solid people to represent you. Do not leave your mortgage to chance. Educate yourself before even considering a mortgage.
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Mortgage Bits: Socialized Housing; A Positive or Negative Future
Posted by Top Home Loans in Economy, General Business, Real Estate on November 10th, 2009
In Canada, we have many essential services socialized. For example, you can get free health care if you need it, roads and infrastructure are designed for public use, and welfare and employment insurance systems provide the unemployed with income.
Even though, many essential human needs have been met, there are still several human needs that people are required to fend for themselves. These include the most basic of needs; food, water, and shelter. Shelter being one of the most necessary of the minimum requirements of life; however, how would a socialized system of housing work?
The first thing that needs to be discussed is how this social service would be paid for, and the obvious answer is taxation on an increasing scale depending on ones annual income. Low income families would generally pay less while high income families would have to pay more. Due to the limited number of full-time permanent employees in Canada, many people would be required to pay for more than their own property. This would demoralize the need for hard work in a way since you would receive a hand out. To avoid this, one may only provide public housing if they are gain fully employed.
What would social housing look like? Social housing would provide the bare minimum to each person who is part of the system. This means a location for one person would have enough room for the necessities. This means, that they may only have a few hundred square foot space.
Also, depending on the family size the property will be bigger to accommodate. Ie. 4 people living together will get a location that is 4 times larger than one person living alone.
Clearly, not everyone wants to live in socialized housing in Canada. Some people earn much more than the average household, and in turn, they would want a much bigger and more extravagant house. With a two tier housing system, this would allow for the well off individuals the ability to purchase more expensive dwellings; therefore, the option would still be able to accommodate those who want something more expensive.
The unfortunate fact of socialized housing is that many would abuse this system. Too many would work a lot less if things were given to them. For the time being, our society has not evolved into a strong sense of community yet, and until we do so, we will continue to have issues with social services.
What do you think of socialized home ownership? Would you prefer it? What else could be socialized?
Mortgage Bits: Cheap Advice is Exactly That
Posted by Top Home Loans in General Business, Mortgage Advice on November 9th, 2009
When selecting a lawyer, most people do not care which lawyer they have. As long as they are getting a good rate, then they are not interested at all in which lawyer they use. The truth is that you do not get the same service with a discount lawyer than what you get with a regular solicitor.
What does a discount lawyer offer?
A discount lawyer is out to get things done as cheaply as possible. This means that you sacrificing such critical items as purchase agreement review, loan review, property details confirmation, title verification, and title insurance.
The discount lawyer may not even speak with you because it would take too much time away from there other activities.
What are the benefits of a full service lawyer?
A full service lawyer will review the offer to purchase, purchase agreement, and mortgage disclosures with you in full. They will, also, walk you through the home buying process step by step without you having to fend for your self. The difference between the realtor, mortgage broker, and the lawyer is that the lawyer is the only one that is actually working for you. This is because you are paying them the money to do so.
Unfortunately, mortgage brokers and realtors are not paid from there clients directly, so they are motivated to sell for the seller or the bank, so take advantage of a highly professional lawyer.
They are the only ones that are on your side completely, every step of the way.