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Toronto, Ontario, Canada (AHN) – Bank of Canada Governor Mark Carney said Monday that even if the Canadian economy is improving, Canadians would still feel the impact of the global recession.

He cited particularly the European financial turbulence which is a reminder that the crisis is not over yet, but only entered a new phase.

Carney told the Economic Club of Canada it would take years to fix the balance sheets of banks, households and countries as the different economic units of society address their debt problems.

He also warned that Canadian households’ debt-to-income ratio has overtaken Americans’ for the first time in more than a decade. This places federal policy makers such as the Bank of Canada in a bind because they have to put brakes on spending and risk the recovery or risk another financial failure.

Carney said that if government agencies would drastically alter policies such as large drop in house prices or hike in key lending rate, many homeowners would be unable to keep up with payments and result in personal and corporate bankruptcies.

According to Statistics Canada, the ratio of household debt-to-disposable income for the third quarter is at 148.1 percent, which went up by 6.7 percent from a year ago. The U.S. household debt-to-disposable income ratio went down by 1.5 percent to 147.2 percent for the same quarter.

The Bank of Canada has stated that it will not likely increase key lending rates until middle of 2011.

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Most real estate purchases are bought with loans so getting a good faith estimate and pre-approval letter from your lender helps the process start off on the right foot. The good faith estimate, or GFE for short, is required by law to be provided by lenders when you are seeking a loan. It lists out the estimated closing costs, monthly payments, and interest rates for the loan program you are looking at getting. The pre-approval letter is provided by lenders once they have run your credit and get your income / debt information. By getting the GFE and pre-approval letter, you can be confident that the loan will get processed with no surprises. There are also additional benefits to getting pre-approval and GFE before you even begin the property search. For one, by discussing your debt to income ratio with your lender and obtaining the GFE, you can determine your maximum price. It helps to know the maximum sales price when shopping around so that you do not waste time and energy looking a over-priced properties, and also vice verse, you do not waste time and energy looking at under-priced properties. You can find an area in your price range that fits your needs and narrow down your search. You also will determine your monthly payments with the GFE. The monthly payments should include the property taxes, insurance, principle, and interest plus any private mortgage insurance (PMI). If the monthly payments are higher than you wanted, then you can adjust your sales price to be lower. Another reason to get your pre-approval and GFE before starting your home search is that you may find out some issues with your credit or financial situation that you could clean up before moving forward with a purchase. For example, the first time I bought a house, I found out that I had a $50 charge on my credit report from 3 years ago, which brought my credit score down. And with a lower credit score, I would have gotten a worse interest rate on the loan. I say ‘would have’ because I was able to pay off this collection and clear up the ding on my credit before going into the loan underwriting process. Finally, by getting a pre-approval letter, you have proof for a seller that a lender has confidence in being able to fund the purchase on your behalf. This helps with presenting offers and negotiating. Many sellers will not even accept an offer unless it is accompanied by a lender’s letter. Furthermore, if you do not have a letter, the seller may counter higher given that he feels he is taking on more risk that you may not be qualified for the loan amount. Also, if you happen to get into a multiple offer situation, your offer will be much stronger with a pre-approval letter.

Before you look for Miami condos, you must first know the basics. You are about to travel a road most traveled but least completed. The real estate journey is a perilous one; full of challenges to test your patience and determination. And if you’re a first-time buyer, make sure you know one of the most and probably the single-most important part of owning a home, the mortgage.

Mortgage 

Mortgage is what you need to purchase Miami condos. If you can afford to pay full, you can do so; but that method is least advisable. Even if you can, doesn’t mean you have to. Remember that you can spend that money for a lot of other useful purposes and probably save you some sanity in case of future emergencies. 

Moving on; your mortgage is basically the loan you need to purchase Miami condos and real estate properties in general. The amount depends on several factors, including your credit history, score, DTI (Debt-to-Income Ratio), down payment, etc. The two basic parts of the mortgage is the principle and interest. The principle is the amount of the mortgage; while the interest is the money you pay the lender, well, because they lent you the money. 

Lender and Broker 

When buying properties, you can either go directly to the lender and transact or hire a mediator or a mortgage broker. The mortgage broker is a helpful addition to any real estate team. The broker will act as the liaison between you and the lender that will officially provide the mortgage. Your broker can also help you calculate the entire home-buying expenses, as well as guide you through the financial motions of real estate. 

Title or Deed 

Once you get the mortgage and owned the property, you have to hire a title company. This company will furnish your title or deed, which will serve as the proof of ownership. What you must know is that as long the mortgage exists, you don’t necessarily own the property because the lender has placed a lien against the title. In case you default, the lender can repossess the property and sell it in order to recover their losses. So basically, the title is just paper unless you pay off the loan. But that doesn’t mean you have to discard it – keep the title securely along your important files. 

Amortization 

Lastly, in Miami condos ownership, homeownership and other kinds of real estate ownership, there is amortization. This is simply the repayment of the loan – something you should be ready to be responsible for every month. 

Mark Michael Ferrer 
Miami Condos

Article Source:http://www.articlesbase.com/real-estate-articles/before-buying-miami-condos-some-mortgage-abcs-1513919.html

Obtaining a mortgage after bankruptcy is quiet easier than most people think. Many don’t realize that there are plausible solutions available for it, so remember; it is not completely impossible for obtaining a mortgage after bankruptcy. There are some aspects which are taken into account during the mortgage application process and this will scrutinize your guaranteed income and the amount of money you have as a deposit. Success of the application process depends on the ability to provide this information correctly.

Timely Payment:

It is a known fact that many lenders will not lend to you for a period of at least two years from the time of the bankruptcy discharge. After the initial two years, obtaining a mortgage will be much easier. To ensure the correct flow of things, you have to manage all your debts from the time of your bankruptcy discharge. Make sure you have a near- to perfect repayment history since the bankruptcy discharge. This means that you must make sure that the debts on your other assets are repaid; those which were not discharged in the bankruptcy.

Deposit:

The chance of getting a mortgage after bankruptcy can be further speeded- up by showing the amount of deposit which you have on your home. An amount as little as 3-5% deposit would be enough to get your application approved.

Limit the Debts:

You should limit your amount of debts and avoid certain thing such as credit card or bank loans, to create a more credible profile and have greater chances of obtaining a mortgage after bankruptcy. Limit your debts as much as possible, to build a credible debt-to-income ratio, so as to clear the evaluation by the mortgage providers.

Credit Report Check:

Many presume that the information on their credit report is automatically correct. It may contain errors and it should be checked for its accuracy. Requesting for a free copy of your credit report through a credit monitoring agency and credit rating agencies, can help you get a clear picture of your credit rating.

Every inaccurate piece of information on your credit report can work against you. Make sure you report any errors in your credit report to the concerned agency, as quickly as possible. This helps speed up the correction within the report and will also help you achieve a favorable debt-income ratio.

Pre approval Process:

This is the best way to determine if you can obtain a mortgage after bankruptcy. It is called a pre- approval process which is fast and simple; with no obligation and no cost involved. After this process, you will know your exact position on your mortgage after bankruptcy.

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Article Source:http://www.articlesbase.com/real-estate-articles/obtaining-a-mortgage-after-bankruptcy-1300637.html