Edison Samuel

Understanding Your Credit Score

2008-06-19T00:52:00Z

Understanding Your Credit Score

Good credit always works to your advantage so here are some tips on how credit scores are formulated (Component Weighting):

Payment History - 35%:

Factors in the recency of, and number of, payments over 30 days late, collections, judgments, and bankruptcies. A single 30-day late payment can drop your score 15-20 points.

Current Debts - 30%:

Considers how much you currently owe (in absolute terms and compared with your credit limits), how many creditors you owe money to, and how much you could owe if you maxed all your available credit.

Age of Accounts -15%:

The longer your accounts have been opened the better. You generally need at least three accounts over one year old.

Type of Credit- 10%:

Bank loans, credit cards, and revolving credit accounts all impact you differently.

Credit Enquiries - 10%:

Numerous credit applications in the past 12 months is a no-no. This is a big benefit of mortgage brokers, who pull your credit only once for multiple lenders.

Besides the obvious (bankruptcies, judgments, collections, etc.) the top Beacon killers are:

Payments over 30-days late
Maxing out credit cards (i.e. using over 75-80% of a high credit limit)

If you have a lot of maxed out cards, bring them at least below 50% of the limit (below 30% is best). Your credit score can jump considerably in as little as a month.

The above information is summarized in the table below:

Component	Weighting	Notes
Payment History	35%	Factors in the recency of, and number of, payments over 30 days late, collections, judgments, and bankruptcies. A single 30-day late payment can drop your score 15-20 points.
Current Debts	30%	Considers how much you currently owe (in absolute terms and compared with your credit limits), how many creditors you owe money to, and how much you could owe if you maxed all your available credit.
Age of Accounts	15%	The longer your accounts have been opened the better. You generally need at least three accounts over one year old.
Type of Credit	10%	Bank loans, credit cards, and revolving credit accounts all impact you differently.
Credit Enquiries	10%	Numerous credit applications in the past 12 months is a no-no. This is a big benefit of mortgage brokers, who pull your credit only once for multiple lenders

Compliments of Artie Ricknauth, MBA

Mortgage Consultant

Mortgage Central

Direct: 416-744-0012

Fax: 416-519-0086

Email: amccanada@rogers.com

Web site: www.mortgage-central.ca

Avoid The Most Common Buyer Errors

2007-10-19T01:58:00Z

Avoid The Most Common Buyer Errors

Shopping for a new home is an emotional experience. It’s also time consuming and comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas:

Paying too much
Losing a dream home to another buyer
Buying the wrong home

When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:

Bidding without sufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional realtor, can offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.

Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.

Unclear title
Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a realtor can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements.

Outdated survey
Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.).

Unexpected repairs
For $300 - $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs. Make the final contract subject to a favourable report.

Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.

Remember additional cost
Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc.

Rushing the closing
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Has anything been forgotten? Don’t rush. You could lose money, financing or even the sale.

Contact MyDaddy today to Learn more abouit the Top 10 Critical Buying Errors

Buying a New Home versus a Resale, which is better?

2007-10-10T18:08:00Z

Buying New Versus Resale

In today's highly competitive market there is a vast array of choices to be made when deciding on the type of dwelling you wish to reside in. This article will focus on the advantages and disadvantages of buying a new home versus a resale home.

Advantages of a New Home
One of the primary advantages of buying a new home is the ability to decorate your home from the beginning exactly the way you want. You can pick all the colors, which range from paint to carpet. You can also make the tile and cabinetry selection for the kitchen and bathrooms.

Often times, new homes will have more modern conveniences, better insulation and can be more energy efficient.

Disadvantages of a New Home
Unfortunately, with a new home purchase you should be prepared for the on-going construction you will find around you. Chances are that your lawn will not be in, your driveway will be gravel and your street will turn into a sea of mud whenever it rains or snows. If things are going to go wrong with a newly constructed house, they will appear in the first one to two years. As the house settles you may find cracks appearing in the walls of the basement.

There are additional expenses associated with new homes that you will not typically find in a resale home. For example, you may have to spend money for appliances, curtains, drapes, landscaping, air conditioning, etc.

Closing costs are typically higher for new homes. The purchaser will pay for such additional costs as the New Home Warranty Program, tree planting, utility hook ups and paving of the driveway.

Usually, when you buy a new home, you don't have an opportunity to see the actual layout. All that is provided is a blueprint and in many cases the end product may be a disappointment to the purchaser. Additionally, there is the uncertainty as to who will be your neighbors.

Advantages of a Resale Home
The major advantage of buying a resale home is that you are moving into an established neighborhood. Your lawn is green, your shrubs are growing, your driveway is paved and your trees are well enough established to give your street a feeling of permanence.

In terms of investment, a resale home will often give you more for your value than a brand new home. Many owners put thousands of dollars into home improvements ranging from small items, such as landscaping, to major projects, such as a finished basement. Although these improvements will make the home more attractive to potential buyers, they may not increase the market value of the home. A $30,000 swimming pool or a $12,000 finished basement or even $5,000 worth of shrubs may make the home very attractive. However these additional costs incurred may not necessarily increase the market value of a home. The buyer gets the home at its real market value, which is based on comparable homes for sale or sold in the neighborhood. All those expensive extras may come to the buyer at little or no cost.

With a resale, the vendor's asking price is almost always negotiable downwards unlike the builders list price which is usually firm. Any extras or changes are added to the list price of a new home.

Crossing the Mortgage Renewal Minefield

2007-10-02T00:53:00Z

Crossing the Mortgage Renewal Minefield

How to survive and thrive!
When your mortgage is about to come up for renewal, you need to make sure you know all of your mortgage options. Better yet, you should have a clear idea of what mortgage strategy is best for you.

Why the need for a strategy?
There's a simple reason. When renewing your mortgage, you're most likely in a different financial position than when you first obtained the loan. As our financial and life circumstances change, so does the mortgage that is best for our needs and goals. Getting married, additions to the family, receiving an inheritance – these are all major life events that can have an impact on which mortgage makes sense. In fact, most of us have questions as our mortgage nears renewal: Should I go with a variable or fixed mortgage? What about taking some of my home's equity and using it for renovations or investments? How can I be sure I'm getting the best rate?
The "strategy" to avoid
At mortgage renewal time, don't be too quick in just signing the renewal form and returning it to your current lender. If you do so, you could be paying a higher rate, and end up with a mortgage product that might not be best suited to your interests and in some cases untold thousands in lost opportunity. That's really no "strategy" at all!
You better shop around…
Canadian mortgage holders are becoming more savvy. More and more, homeowners are shopping around to get a better rate when their mortgage comes up for renewal.However, working on your own, you could apply to perhaps two or three financial institutions and select from their in-house mortgage offerings. A better approach is to talk to a mortgage broker – he or she can "shop" your application to an extensive line-up of lenders who offer a wide range of mortgage options.Most importantly, a mortgage broker can offer expert advice on a customized mortgage strategy to ensure you are taking full advantage of the many mortgage options on the market in Canada. He or she will also negotiate with lenders on your behalf to make certain that you get an extremely competitive interest rate.
Thinking of switching?
For those who are thinking of switching their current mortgage to another lender to get a better interest rate, most lenders now offer "no cost or low cost switches." This can be a smart way to reduce your interest costs. Think of your mortgage renewal as an opportunity – to get the most from your financing. With a little advice, and a strategy in place, you'll be confident that your mortgage is meeting your needs – now and in the future.
Let me help you through the process!

Carlo Carpino,AMP

Mortgage Consultant

(905) 796-6661
Contributing writer to MyDaddyhomes.com
Buying or Selling a Home contact Edison Samuel at MyDaddyHomes 416-258-3079, or 905-456-1177

Investing in a Rental Property - Where to Start?

2007-10-02T00:40:00Z

Investing in a Rental Property - Where to Start?

Explore your options before making the leap to being a landlord.

Many of us are interested in learning more about buying an investment property and renting it out. But where to start? While this can prove to be a good way to steadily build wealth, this type of investment is a major commitment and is certainly not for everyone. Making the leap to being a landlord requires careful consideration. Understanding the risks involved, as well as collecting sound information and advice are the keys to planning a successful venture. Here are some things to bear in mind as you explore your options:
Research the local market.
Get up-to-date information about your local rental and real estate markets so you can make an accurate estimate of how much you can charge for rent, as well as how much you should pay for the property. Your real estate agent has expertise on local conditions and can provide solid guidance in this area.
Make sure you add up all the costs. In addition to expenses such as a mortgage and taxes, the longer you plan to own the property, the more you'll most likely need to invest in maintenance and repairs. For maintenance, a rule of thumb is to set aside about two percent of the home's value per year. A home equity line of credit is a good way to have access to contingency funds should you need to pay for repairs, gaps between tenants, or other expenses.
Don't forget to factor in the cost of fire insurance, and for recreational property potentially other types of insurance (against floods or windstorms) depending on the location. Liability insurance for landlords can cover risks such as malicious or accidental damage to your property by a tenant, any legal liability should a tenant injure themselves, and lost rental income should tenants move out without paying.
Learn the tax implications.
Mortgage interest and many costs associated with buying the property may be written off. Your accountant can provide full details on the tax consequences of such an investment.
Know the law.
You should study up on the rental property laws in your jurisdiction, including fair housing laws, to make sure you know your rights and obligations and also those of your tenants.
Seek advice on financing.
There are unique aspects to financing rental properties: lenders typically expect a down payment of at least 10-15% if the mortgage is insured and 20% for a conventional mortgage. Another option is to draw on the equity from another of your properties. In qualifying for this mortgage, a maximum of 50 to 80% of rental income may be used as "other income" in your mortgage application.
Many investment property buyers use the equity in their primary residence for a down payment. Options for doing this include a "cash-out" refinance, a home equity loan or an equity line of credit.
A mortgage broker can offer a range of unique products and professional advice on the ins and outs of financing investment properties.
Ask yourself: are you willing to be a landlord?
This can be time-consuming and for some it can be hard to remain emotionally detached when they have to rigorously screen tenants to make sure they're reliable, track down overdue rents and field repair calls. You may decide to let a professional property management service handle the nitty gritty of dealing with tenants. If you choose to rent your property through a management company, expect them to take anywhere from 10 to 50 percent of the rental income.
Take the long view. Having a long-term investment strategy in place can help you ride out any difficulties, such as a dip in the price of the property, periods with no tenants, or having to pay for unforeseen maintenance. When it comes to rental properties, wealth is earned over time, not overnight.
Compliments Of Carlo Carpino
Mortgage consultant
A MyDaddhhomes Contributing Writer
Contact MyDaddy For a List Of Investment Properties
Cell: 416-258-3079, offc: 905-456-1177

FREE Buyer Consultation-Learn How To Avoid Buying Mistakes

2007-05-17T17:17:00Z

Note that this information is outdated.

FREE Buyer Consultation on Buying a Home When: Fridays Where: RE/MAX Real Estate Centre, 2 County Crt Blvd, #150, Brampton Time: As per Client Who Can Attend: Open To Anyone Registration: By Email or Phone

When/Where: RE/MAX Real Estate Centre, 2 County Crt Blvd, #150, Brampton

Want to stop renting?

2007-02-22T03:25:00Z

Are you tired of renting and would like to own a home? Would you like to discover 3 easy steps How you can Buy a Home with $0 Down. Well John and Jackie Smith were just like you, they had been renting for years and wanted to buy a home but trying to save for the 5% downpayment was a problem.

One day they were surfing the net and they came upon a Google ad “No Money Down Real Estate” they clicked on the ad and they were brought to MyDaddyHomes.com and their lives were instantly changed. Ed Samuel showed them 3 easy steps they could take to Stop Renting and Buy a Home with no money Down." They took those 3 steps and now have a place to call their own, you can do the same.

According to the National Association of Realtors 42 percent of first-time home buyers who purchased a home paid zero down. Until recently the standard downpayment was 5% of the purchase price, and the highest barrier to home ownership was the lack of cash. Then along came the “No Money Down Program” that required zero percent down. And today's zero-down programs are flinging open the doors to home ownership even wider. They're so popular "because many people with decent credit just don't have the money they need for a downpayment,"

Some Frequently Asked Questions By Renters

I don't have a downpayment, Can I buy a Home?

Is renting a home less costly than buying a home?

What are closing costs and how much do i need?

Are house prices going up or down or stable?

What are all the costs involved in buying and maintaining a home?

What is a buyers agent? What does this specifically do for a buyer?

If you would like to Stop Renting and Say GoodBye to Mr. Landlord!! Visit MyDaddyHomes.com today.