There are two options available when seeking a new home for your family. You can purchase a resale (meaning an older home that has already been lived in) or a new construction. While each choice provides a distinct set of pros and cons, purchasing a newly constructed home offers numerous comparative benefits. Below are just 10 of the primary benefits. 

1. Customization

New constructions allow homeowners to customize their homes with a variety of options prior to moving in, if they purchase during the pre-construction phase.

2. No Extra Work

Homeowners need not put in any work prior to move in. Resales, on the other hand, often require at least a minimal amount of renovations prior to move in.

3. Modern Appliances

A new construction will be equipped with modern appliances and conveniences, whereas resales may need to be updated. For example, most new homes are created with dishwashers, which are not often seen in older homes.

4. Stays Repair Free

Your home should be repair free for a minimum of two years. If anything does break during the first few years, most items will still be under warranty. 

5. Eco-Friendlier

With better construction materials that have yet to see the effects of time and weather, new constructions are much eco-friendlier. The environmentally-friendly new materials could help lower your utility bills for years to come. 

6. Modern Technologies

New constructions often come already equipped with modern technologies or 'gadgets.' Modern technologies could include a home security system, geothermal flooring, solar paneling, or smart home technologies, to name a few.

7. New Home Smell

As strange as it may seem, new constructions come with that new home smell and feel, which is distinctly appealing and satisfying. There is also the benefit of no 'strange' smells from age, as might come with a resale.

8. Higher Resale Price

If you decide to sell your home a few years down the road, a new construction will sell at a considerably higher price than older homes. Each time an older home is sold (unless it has undergone a full remodeling), it typically sells at a slightly lower price.

9. Community Features

New homes are often built in communities, which offer a lot of extra amenities and security features. Examples of extra amenities might include a pool, club house, security gates, game room for children, and many other things that will  provide convenient, safe areas for yourself or children to pass their free time.

10. Founding a Neighborhood

Many new homes are being built in areas where a neighborhood is not yet established. Being among the first to move in means you have the distinct privilege of helping found a safe neighborhood for your children (and their new friends) to grow up in.

Conclusion

Choosing to purchase a newly constructed house has several distinct benefits when compared to the alternative of purchasing a resale. This article discusses just 10 of the primary benefits homeowners may experience during their home buyer's journey. This list is not, however, all inclusive and each unique family (and home) will come with it's own unique benefits.

It is the perennial question for every first-time homeowner. How much house can I afford? As with so many life-changing decisions, there is no one right answer to this common query, and the size of the home you buy, and the mortgage you take out, will depend on several critical factors.

If you want to know how much home you can afford, you need to ask yourself the right questions. Even more importantly, you need to provide yourself with honest answers to those queries. Here are some things you should be asking as you get ready for the transition from renter to first-time home buyer. 

•What is my current income? Is that income secure, or is my job in jeopardy? Your ability to pay the mortgage will depend on visibility of income, making the answer to this question extremely critical. 

•How much disposable income do I currently have? How much of that disposable income can I devote to the costs of home ownership? Owning a home is more than paying the mortgage, and you will need to set money aside for repairs, upkeep, and other essentials. 

•Do I have money for a down payment? The more you can put down, the smaller your monthly mortgage payment will be. Even if you can do it, financing 100% of the purchase price could make your mortgage payment unaffordable. 

•How much do I want to devote to savings, investments and other essentials? Putting all your money into the roof over your head could leave you dangerously undiversified and put your financial future at risk. 

•What is my credit score? What steps can I take to raise it quickly? A low credit score can mean a higher interest rate on your mortgage or even an outright denial. If your credit score is less than optimal, paying down debt and taking other steps to raise it will be to your advantage. 

•What other debts do I have? Taking on a big mortgage payment when you have other debts can be risky, so take a hard look at your monthly expenses and your balance sheet. It may be worth putting off the home purchase until you have paid your other debts. 

•Am I willing to shop for a lower priced home if it means a more affordable mortgage payment? You may need to give up some wants or consider a different neighborhood to find a home you can more easily afford. 

Shopping for your first home can be an intimidating process, but knowing how much home you can afford will make that process easier and less stressful. The real estate agent and mortgage broker will have their opinions about home affordability and optimal mortgage payments, but in the end, your considered opinion is what counts.

For many Canadians looking to purchase a home, bad credit scores stand in the way of getting a mortgage. Most lenders prefer your score to be 650 or higher. If they do allow for lower credit scores, it is typically because the interest ratings on those loans are considerably higher.

If you want to get a good deal on a mortgage with low interest rates, the best thing you can do is to improve your credit score. Here are three ways you can do just that.

1. Check Your Report

The very first thing you need to do is check your credit report. You are allowed one free credit report per year, but some sites will allow you to purchase a full report at any time for a small fee.

Scan the report to see if there are any errors. You'd be surprised to find out most people do have errors on their credit report. It might be in the form of something you finished paying but was never removed, or something that isn't yours to begin with.

Once these errors are removed from your report, your credit rating might go up anywhere from a few points to a few dozen. It just depends on how many errors there were and how largely they were impacting your score.

2. Start Paying Off Debts

If you have any outstanding debts on your report that are bringing down your score, start paying them off. It can be hard, but even if you can only allow $5 or $10 a week it can bring your outstanding debts down considerably over the course of a few months.

For example, let's say your total debts amount to $5,000. Starting with your smallest debt (because these will be paid off quicker), you can begin making $10 payments each week. Over the course of six months, you would have paid off $240, lowering your debt to $4,760. After a year, you'd have paid $480.

Also, take into consideration that most lenders are willing to bargain with you. They may allow you to pay between 50 percent and 75 percent of what the original debt amount was.

The reason they are willing to do this is it's better for them, at the point of collections, to receive some money than to receive none. That same $5,000 could be lowered to $2,500 to $3,250. With your $10 a week payments on top of that, you could make a major dent in your debt in a single year!

3. Credit Cards

Credit cards are one way to raise your credit score, but this only works if you use them responsibly. Keep the total amount used under 30 percent, and make sure you pay it off in full by the end of each month.

Some people have found great success in using their credit cards only for their morning coffee or daily lunch. At the end of the week, they pay off the amount and end up with higher credit scores as a result. 

The key is to continue spending within your budget. Think of your credit card as a debit card, but with a cash advance feature. If you don't know for certain that you'll have the funds for a purchase within one to two weeks, then don't make the purchase.

Conclusion

These three things can help you to slowly, but steadily (and possibly significantly) increase your credit rating. This can help you to not only obtain a mortgage with a low interest but increase the future chances you might be approved for other loans (like for vehicles) also. It is never a bad time to work on your credit score.

Securing pre-qualification, pre-approval, and mortgage commitment letters can simplify the mortgage application process. These steps can also help home buyers avoid disaster. They don't need all three, however.

Mortgage Pre-Qualification and Buying a House

Future home buyers can get pre-qualified for a home mortgage long before they ever start house shopping. Used mostly by buyers to gather information and ask questions, this process is quite informal. Applicants have a consultation with a mortgage lender. He or she will ask a range of questions about debt, finances, the type of home the applicant would like to have, and the requirements for various loans.

Using this information, the mortgage lender will then provide the applicant with a range of information. First, the lender will discuss any details in the applicant's financial profile that may cause issues with the approval process.

He'll also discuss mortgage types, their requirements, and what borrowers need to be approved. This gives people looking to buy a home time to fix any credit problems, ensure they have the down payment, and that they make enough money. It also gives applicants an idea of what size of a mortgage they could get, and therefore, what kind of houses to look at.

Mortgage pre-qualification has no real value outside of acting as a starting point. The lender doesn't verify any financial information, run any checks, or give binding mortgage estimates. Therefore, it's unwise to use mortgage pre-qualification as a negotiation tool when buying a home. For that, consider getting pre-approved.

Mortgage Pre-Approval and Home Buying

Being pre-approved for a home loan is like the middle ground between pre-qualifying and submitting a mortgage application. During this process, the mortgage lender will review and verify an applicant's financial information to determine their creditability. This can take some time, but it costs nothing. And once someone has been pre-approved, they can demonstrate to the seller and real estate agents that they're serious about negotiations. It can also speed up the mortgage approval process, which can be a huge benefit in a hot housing market.

To be pre-approved for mortgages, applicants will need copies of their credit reports and give the lender permission to do a hard tri-merge check, which pulls reports from the three main credit bureaus. The lender will also need a few month's of bank statements and pay stubs, tax returns, any sort of asset verification, and proof of any other forms of qualifying income.

When the underwriter returns the application, they will say that it has been approved, approved with conditions, suspended, or denied. If it has been approved or denied, this part of the process is over. The borrower can move to the next step, try another lender, or fix their financial issues. If the application was suspended, it means the underwriter requires more documentation or information before making a decision. Approval with conditions means the applicant will need to satisfy some concerns or requirements before the mortgage can proceed.

At this point, borrowers should discuss locking in the interest rate and loan terms. How long the lock lasts and what it costs will depend on the lender and the mortgage. However, they will protect the buyer from rising interest rates or term changes between pre-approval and the date the mortgage closes.

Mortgage Commitment Letter

To provide a borrower with proof of approval, underwriters can complete a commitment letter. It will include the mortgage type, amounts, and other details. Real estate agents and sellers see this as proof that a buyer is serious and financially able to negotiate for a specific. The property sale can go forward as soon as the seller approves the offer. This puts the ball in the seller's court, so to speak.

Warnings about Pre-Approvals

Borrowers should get pre-approval before choosing a house to buy. Pre-approval and approval both take time. It would also be heartbreaking to fall in love with a property that falls outside the budget. Or, for someone to settle for a home that's well below their approved limit.

Mortgage commitment letters and pre-approval letters are not the same. Applicants can still be denied after receiving a pre-approval letter for a number of reasons. A recent job change, a negative item appearing on a credit report, incurring new debt, or a change in requirements on the lender's side can all cause a denial after pre-approval.

Pre-qualification, pre-approval, and commitment letters all have different procedures and purposes. It's best for anyone wanting to buy a home to understand how these three options work and which one they'll need. They should also apply early and lock in the terms and interest rate as soon as possible. Then, they just have to focus on finding the perfect house and putting in an offer.

Purchasing your first home is always an exciting life milestone. However, if you want to make a smooth and easy transition into home ownership, there are a few mistakes you should try to avoid along the way, such as:

Not Shopping around for a Lender

When trying to purchase your first home, the simple act of being pre-approved for a mortgage can be a huge relief. However, it is rarely a good idea to finalize your mortgage with the first lender who pre-approves you. Instead, you should try to shop around with multiple lenders to see who can offer you the best rates and lowest closing costs. Failing to do so could end up costing you thousands of dollars in the long-run.

Failing to Consider the Neighborhood

The house you just saw may be your dream home, but what about the neighborhood? The property's surroundings often have an effect on the quality of life you will enjoy in your new home - so you would be well advised to learn as much about it as you possibly can. After all, the last thing you want to do is make a long-term commitment to a neighborhood you don't enjoy living in.   

Ignoring Issues in the Home Inspection Report

When the seller accepts your offer on their home, it can be tempting to begin to think of the home as yours. However, thinking this way can lead to mistakes. In particular, when buyers begin to get too attached to a home, they tend to ignore issues brought up on the home inspection report. However, you should never be afraid to ask for concessions or even walk away from the home entirely if the inspection throws up something unexpected - even if you absolutely love the home in question.

In Closing

If you attempt to rush the real estate purchasing process, you are likely to make mistakes similar to the ones outlined in this article. However, if you take your time and carefully consider all of your options, you will soon end up in the home of your dreams - without suffering any unnecessary financial damage along the way.

Selling your home can be a time-consuming process - a situation which is less than ideal if you want to move sooner rather than later. Luckily, though, there are a few things that you can do to speed up the process, such as:

1. Hire the right agent

You will have no trouble locating plenty of real estate agents who are willing to sell your property - but finding the right agent can make all the difference. Before you select the agent, ask them about their experience, the properties they have sold, and if they have sold any houses in your neighborhood recently. Also, conduct some research on the agent you have chosen by talking to some of their past clients. Put simply, if you wish to sell quickly, you should choose your agent very carefully.

2. Take the right pictures

In the age of the smartphone camera, your first instinct may be to be your own photographer. While this may work for vacations and other informal events, you should always hire a professional to photograph your house. These pictures will almost certainly be the first thing that a potential buyer will see when they click on your property online. As such, if you want to make a quick sale, you should ensure that the pictures are perfect.

3. Time the sale right

The property market has its fair share of ebbs and flows. Before you put your property up for sale, you should study the patterns of the market. In most cities, you are likely to find that homes sell quicker during the summer - since that is when buyers with children are available to go house hunting. Your area may be different though, so be sure to do your research ahead of time.

4. Stage the property

If you want potential buyers to fall in love with your home, you will need to help them envision themselves living there. One of the best ways to accomplish this is to have the house professionally staged. By creating an environment that the buyer can feel at home in, you are much more likely to receive offers after the viewing.

In Closing

Though selling a home can be a time-consuming process, it doesn't have to be. By following the advice outlined here, you can sell your house in a hurry.

Investing in real estate can be a great way to grow your wealth. However, in order to be a successful investor, you will need to identify the right properties to invest in. In particular, you will want to look closely at the following aspects of any house, condominium, or townhome you are considering making an offer on:

Location

One of the most important things to look for in an investment property is a great location. Put simply, you want to purchase real estate located in an area that people want to live in. However, this doesn't mean the home has to be in a gated community with perfectly manicured lawns. Instead, potential buyers and renters will be more interested in properties that are close to good schools, offer easy transportation options, and have plenty of retail and dining establishments nearby.

Normality

When searching for your own personal home, you may have been on the lookout for a house with unique character or interesting features. However, finding an investment property is very different. Since you want your new house or condo to appeal to as many buyers or renters as possible, it is best to purchase one that is relatively normal and cookie-cutter. This means saying yes to the three-bedroom, two-bathroom bungalow and saying no to the stunning Victorian townhome with an outhouse in the back yard.

Workable Financial Numbers

The whole reason you are looking to invest in real estate is to make money. As such, you should only consider deals where the numbers and the financials make sense. Your personal tastes and other external factors simply don't matter. The perfect investment property isn't the one that you and your friends fall in love with - it is the one where you stand to make the most money.

In Closing

Though finding and purchasing an investment property can certainly be quite difficult, it is by no means impossible. By following the advice laid out in this article, you can ensure your foray into the world of real estate investing is as successful as possible.

If you're throwing your hard-earned money away on rent each month, putting that same amount towards your own home could be an incredible advantage. However, it's also imperative to consider whether you can afford the costs associated with a mortgage, property insurance and potential repairs that might be necessary in the future.

Buying a starter home doesn't have to feel like an overwhelming experience. Here are some things to think about that might help you make a more informed decision.

Evaluating Local Prices

It's not uncommon for home prices to be unusually high in some areas, but to be relatively low within a specific city. It can be tempting to move forward with purchasing a home even in the midst of spiking prices in an effort to ensure that prices won't rise even higher. In some cases, higher market trends might be an indication that a downturn is within the near future. While the general rule of thumb for investing is to 'buy low, sell high,' forecasting the right timing to invest in the real estate market isn't always as straightforward. The most efficient way to evaluate local housing prices is to consult with a local Realtor who has adequate experience. This is an important step that could help to safeguard your financial investment.

Assess Your Personal Goals

How long do you anticipate staying in your home? Do you have plans to relocate within the near future, or are you looking to settle down for a decade or longer? What goals do you have for your new home? If you're planning on raising your family there, you should be relatively protected even during the midst of a fluctuating market. For example, even if interest rates spike a year after you've purchased a new home and it triggers a drop in demand, it most likely won't have an adverse effect on your home's equity if you're planning to stay there indefinitely. On the flip side, if you decide to move a year after you've purchased and interest rates begin to soar, you could take a financial hit.

How Much of a Down Payment Can You Afford?

Normally the minimum down payment will come from your own savings and resources, however you may receive a gift from an immediate relative that can be used as well.  The amount your down payment will affect the price of the home you can purchase, the size of your mortgage and your monthly payment, and as well the amount of insurance you will pay.  Work with a mortgage professional, they have expertise in these areas and can advise you!

The Bottom Line

The number of years that you plan to live in your home will make a significant impact on whether you might benefit more from renting for a while or not. Determining whether it's the right timing to buy might not have as much to do with the economy as it has to do with your personal goals and budget.

Is your home currently on the market? Are you hoping for a quick sale and want to stack the odds in your favour? One powerful option to consider is to maximize the potential of the open house showings of your home. It is no longer enough to pop a sign on your lawn, leave a plate of cookies on the counter, and hope buyers will fall in love with your home. Today's sellers need to approach a showing like a reconnaissance mission. By analyzing the competition, taking advantage of technology, and understanding buyer patterns, you can significantly increase the potential of open house showings. Will one of the following tips help you sell your home faster?

- Use a mobile app to offer potential buyers extra details. Add the app link to feature sheets and email footers. If you're fortunate enough to have numerous visitors to your open house, you may not be able to attend to them all at once. A mobile app helps visitors discover tempting tidbits until you have a moment to attend to your next set of potential buyers.

- Consider holding your open house later in the afternoon. Instead of competing with other open houses for time slots early in the day, treat guests to viewings just slightly before the dinner hour. Your home's showing can leave a lasting impression and provide an intriguing topic for dinner conversation.

- Don't wait until the day of an open house to start promoting. Start marketing well in advance by updating your email signature, posting previews to your Facebook page, and tweeting out tempting tidbits on Twitter. Make sure lawn signage is in place ahead of time and neighbourhood bulletin boards have a current promotional flyer for your home.

- Consider creating a virtual tour for visitors that might not be able to attend your showing. Thanks to the abundance of helpful photography apps, you can create panoramic shots or videos of each room without having to hire a professional photographer.

- Another option that is growing in popularity is to use a drone to photograph the exterior of a home. Check with local hobby shops to see if they offer drone photography as one of their services. Be sure to check with city officials first to ensure that there are no air space restrictions in your area regarding aerial photography. Use the video to garner attention ahead of time for your open house.

These are just a few options you can consider to boost the potential of your open house. With numerous homes for buyers to consider, making your open house stand out is crucial if you want to increase your chances of a sale. Do you think you will be integrating any of these real estate tips into your next showing?

Building an emergency fund is something most people know they should do but few actually get around to doing. A recent study found that nearly two-thirds of Americans did not have an emergency fund, and more than half would have trouble coming up with $1,000 on short notice. That lack of savings puts them at risk and makes achieving long-term financial goals much more difficult.

Building an emergency fund is a critical first step on the road to financial security. Many people think that they do not make enough money to build an emergency fund, but even low-income workers can set money aside if they take the right steps.

Take Note of Daily Expenses

You may think you have no extra money to build an emergency fund, but those extra dollars could be hiding in plain sight. Take a few minutes to review your normal daily expenses, from that morning cup of coffee and lunch with coworkers to daily parking charges and the take-out pizza you grab on the way home.

Look for ways to economize and swap high costs for lower ones.

Bagging up your leftovers from last night's dinner could save you $10 or more a day -- that's several hundred dollars a month. Making your coffee at home could save you $20 to $50 more, while skipping the take-out once or twice a week could save you $100 or more. If your town offers public transportation, swapping your car for a bus or trolley could slash your parking charges and save you even more.

Start a Piggy Bank

Now that you have identified the leaks in your daily budget, you can use that knowledge to start building an emergency fund. Take that $10 you would have spent on lunch and place it in a special spot in your wallet. When you get home, transfer that cash to your new piggy bank and watch the money accumulate. When your bank is full, you can use the money to start the savings account that will become your emergency fund.

You do not have to confine your savings to folding money. Change works just as well, and it is much easier to accumulate. Every time you get change, keep it in your pocket until you get home, then transfer it to your piggy bank. You may be surprised at how quickly that spare change adds up.

Making money in any real estate venture is a difficult task, and many people don't have the skills (or the stomach) for flipping houses. An alternative to this intrinsically risky activity is to purchase a property for the long term and rent it out. These types of income properties are becoming more and more common and the following article will touch on why income properties make so much sense.

Low Interest Rates

Interest rates are currently at historic lows, and the central bank does not appear to be interested in increasing the rate any time soon. These rates allow investors to finance their properties more easily and allow them to offset a great deal of their reduced housing expenses via the income generated by renting the property. It is important to consider other costs associated with the property such as utilities, insurance, maintenance, and property taxes, but by renting out your property you are effectively having someone else pay down your mortgage for you.

Using Equity for Future Redevelopment

Holding an income property as a long-term investment means that over time you will be paying down a significant amount of your mortgage while, potentially, seeing appreciation in your property value. This long-term strategy could leave you in a position for future redevelopment of your property using mostly income (or equity) generated from your property.

Tax Implications

Depending on your local taxing jurisdiction there are likely some tax implications to consider before renting out a property. It's important to understand the details related to property taxes, income taxes, and capital gains taxation. It is also crucial to understand what expense items are income-tax deductible. In many cases you will be able to deduct mortgage interest, utilities, property taxes, property management fees, and many other items. Some areas also permit investors to incorporate, allowing them to be taxed at the corporate tax rate while they pay themselves dividends. Each situation is different but incorporating can result in a corporate income-tax rate significantly lower than a person income-tax rate.

Grants from Municipalities

The need for higher density is a major priority for many local jurisdictions, and grant programs are becoming a popular way for municipalities to encourage investors and homeowners to add suites to their properties. These grants will not typically cover the entire cost of constructing a suite at your property, but some municipalities offer incentives of up to 25% of the construction expense.

Gaining Equity by Adding a Suite

Adding a rental unit, or multiple rental units, will typically add substantial equity to your property. This means that on top of having an investment that is generating income on a monthly basis, you will also have extra equity available if you do decide to sell your property in the short term.

It is important to remember that as a rental investment, your property doesn't need to be renovated to a brand new level. Sweat equity is great, but try to keep costs reasonable, and maintain building quality at a level comparable to the local market, and expect to see some depreciation over the life of your investment.

Long-Term Returns

The biggest benefit of holding a long-term income property is the return you will see over your investment horizon. Your property will produce income regularly, and hopefully appreciate in value, and this could all be happening while you're paying down some form of housing debt. For these reasons, the returns an investor can expect to see from their purchase or development of an income property have the potential to far outperform most other investments of a similar size.

Enjoying your backyard in the summer months is a treat if you have been cooped up indoors during the cold and wet months. Here are four ways you can spruce up your yard and make it a summer haven.

1. Clean your outdoor furniture
After months of not being used and sitting around collecting dust and dirt, your outdoor furniture probably looks less than inviting. It's time to break out a bucket of water and soap, and clean them up. If they still look shabby, you can can paint them. This is a good way to change the look of your backyard furniture for the cost of a can of paint.

2. Create shaded places to relax
During the summer months it's nice to spend time outdoors, but there should be shaded areas so that no one has to be directly in the sun. If you're lucky enough to have a large tree in your backyard, you can arrange seating underneath. If you have a table on which you have meals outdoors, use an umbrella to create shade.

3. Add colorful flowers
One of the joys of summer is the abundance of bright colors. You can purchase or grow flowers to add to the patio or perimeter of your yard. Bright colors put people in a good mood and make them want to spend time in the area. If you're a creative person, you might also want to paint your flowerpots to add extra color.

4. Add lighting for evenings
Enjoying your backyard doesn't have to stop when the sun goes down. You can string lights around your yard and enjoy it in the evening as well. You can go as simply as white lights around your patio, or get more creative if you're the crafty and adventurous type. You can find dozens of lighting ideas online.

It doesn't take a lot of money to improve the look of your yard, just a little time and creativity.