Book Early & Be Prepared

The van line community lost a lot of drivers during the economic downturn, and that is creating a backlog this summer as van lines are unable to keep up with demand. In some cases, families are being put on wait lists for up to two months.  That can be a pretty stressful situation … especially if a deal can fall through because the homeowners weren’t able to vacate by close date.  To ensure the homeowners have a stress-free move, and you have a stress-free closing, take our advice:

-          Get quotes now. Know options so clients are ready to book when they receive an offer.

-          Set a date. Schedule with chosen van line as soon as possible.  

-          Be prepared.  See the below tips to get ahead of the game and tie up loose ends.

 Create a Household Inventory :

One of the great benefits when planning a move is the opportunity it provides to take stock of the items you have acquired over the years.  This can be done by creating a household inventory, a detailed descriptive list of household goods showing the number and condition of each item.   In addition to ensuring all belongings arrive at their destination, the inventory list is invaluable in the event of natural disasters, fire or theft.   An up to date, accurate record of all important documents and household goods goes a long way to providing peace of mind on moving day – and beyond.

Important Documents

Get all critical documents together and have copies made.  Keep all original documents with you throughout the move, including:  

-Birth Certificates

-Marriage Licenses

-Social Security Cards

-Insurance Policies & Wills

-Deeds & Titles

-Stock & Bonds Certificates

-Household inventory list

-Record Belongings

 Make a record of your belongings. Use a video camera and a digital camera to create an accurate visual record of goods and their condition.  Record total paid for an item and where it was purchased (this is where saving receipts comes in handy).

-          Record serial numbers and brand names for all electronics.

-          Record any distinct features regarding the items being recorded.

-          Record expensive pieces of clothing, kitchen items, tools, and anything else of value.

 Make copies of your inventory list when completed.  And, give copies to your insurance agent.

This inventory can be used in the event of a fire or other disaster. Serial numbers, values, where they were purchased, and photos of said items can help you in the event of a recovery need.

 Save a copy in a secure location online, or give to a friend or relative in case you lose the original.

Be sure to keep the originals with you on moving day with your other important papers.

… And Don’t Forget…

Houseplants

Decide what you want to do with houseplants. You can either move them yourself (look into rules and regulations regarding transport of houseplants first!) or you can give them as gifts to friends or family.

Pets

Take your pets to the vet and make sure that all of their shots are up to date. Carry all appropriate documentation with you and your pets on move day. Ensure that rabies tags are attached to your pet’s collars along with contact information in the event your pet gets away from you in unfamiliar surroundings.

Retrieve & Return

Retrieve your items from the cleaners and from storage. Return all library books and rented movies. 

Return items you have borrowed and collect items that have been borrowed. Get items from safety deposit boxes and close accounts and arrange for new accounts at your destination.

For many children, starting school can be a distressing experience and it is very common for parents to meet resistance from a scared or sad child. Between separation anxiety and the change in everyday routine, going to school for the first time is a big event that can be easily fraught with unease, nervousness, and fear. And that’s just for the children. Sending a child to school for the first time is commonly a very emotional and bittersweet time for parents, too. Fortunately, there are ways for both parents and children to prepare for and ease into school.
Whether it’s preschool or kindergarten, children eventually will adjust to the new routine of school. It may happen by the end of the first day or the first week or even a whole month – kindness, patience and support play a major role in this new change.

Preparation Pointers:

- The best way to start preparing for school is with the parents’ attitude. By expressing happiness and excitement for school, your child will begin associating school with positive emotions. It will prove to be a challenge for both of you if the first day of school is viewed as a sad or scary event rather than a happy time.

- Prompting is a great tool for parents since it is usually difficult for toddlers to adjust to change. When it’s getting time to leave the playground or get ready for dinner, it helps when parents inform their children at regular intervals the amount of time until the next change. (For example, calling 15 minutes before leaving the playground, 10 minutes, 5 minutes, etc…). Prompting for school is no different. Start a countdown a few weeks before school begins, by counting down the weeks and days. Use a calendar to make it more fun!

- Introducing your child to the school and teacher before school starts is a great way to settle the unease of a new place and a new teacher.

- Before preschool or kindergarten actually starts, play school! Act out what school is like with your child and take turns playing teacher. Incorporate snack time, finger-painting and nap time.

- It is very common for children to feel nervous or sad before school starts, so take the time to ask your child how he or she feels about starting school. Validate their feelings and let them know that it’s “OK” to feel that way. Share your own experience with starting school.

- When the BIG DAY arrives, do prepare in advance for the possibility of tears or a tantrum. If that does happen, stay at home until your child calms down (if possible) but don’t linger for too long. Expressing your own sadness may heighten their fear, so make sure you keep your feelings hidden with a smile. Make sure you hug him or her goodbye with a smile and walk out the door even though they may start to cry. Do not go back, this is their time to learn that their new environment is safe; they need to trust school as much as they trust you.

END OF FIRST DAY
DON’T gush about how much you missed him or her, especially if they had a difficult time going.

DON’T express your own loneliness or sadness since it may cause them to feel guilty or sad.

DO ask about their day – activities they liked? Favorite part? What they are looking forward to doing the following day?

DO create a reward system if your child still needs help easing into this new environment. Rewarding your child with a sticker or a hand stamp after each day may do the trick. Or work up to a trip to the neighborhood frozen yogurt parlor or park after so many successful days.

Hopefully, you have been enjoying wonderful vegetables from your garden all summer long. Gardens are wonderful and they produce a great deal of vegetables for us to enjoy and give to our friends and family. It is
important to get your garden ready for Fall so that you can have the best garden next year. You want to be able to enjoy all the great things again next year.

Tip #1 for Getting Your Garden Ready for Fall: Weeding

Wedding your garden can seem like a total pain to do. However, it is important to get all of the remaining weeds out of your garden. You do not want them seeding and then have weeds sprout up all through the garden next year.

Weeds all have seeds and dormant roots during the Fall. This is why it is very important that you get rid of weeds that are in your garden even if all the vegetables are done for the year. This is an important step for you to make sure that you do and not skip to have the best garden for later.

Tip #2 for Getting Your Garden Ready for Fall: Several Bags of Potting Soil

Many people do not realize it but digging and pulling weeds can use up some of the potting soil that is already in your garden. After your garden has completed, you need to add several bags of potting soil to the garden area. You want to add the potting soil directly on top of the other soil that is in the garden. This is an important step for you to make sure that you do and not skip to have the best garden for later.

Tip #3 for Getting Your Garden Ready for Fall: Fertilizer

The next step in getting your garden ready for fall is to spread a thin layer of general fertilizer over your garden. You can get Miracle Grow or other fertilizers for vegetables and blooming plants from your local hardware store or gardening store. This is an important step for you to make sure that you do and not skip to have the best garden for later.

Tip #4 for Getting Your Garden Ready for Fall: Compost

Compost adds many nutrients to your soil. To have a good soil for the Fall and later months you need plenty of good compost added to your garden area. The compost will give the soil back everything that it needs that
the fertilizer can’t give to the soil. This is an important step for you to make sure that you do and not skip to have the best garden for later.

Many people make their compost throughout the summer months when they cut their grass. Other people buy their compost for the garden from the local hardware store or the local gardening store.

Tip #5 for Getting Your Garden Ready for Fall: Tilling

Now that you have everything on top of your soil that needs to be there it is time to get the under soil ready for your garden. You should have no weeds. You should have a layer of potting soil. You should have a layer of fertilizer. You should have a layer of compost.

Next you are going to rent a till from the garden store or hardware store in your area. You should till the entire garden area. This will mix the soils together and plow up any old vegetable plants that you still have in the garden. These are good for the soil too.

Tilling is an important part of Fall gardening. It is very important not to skip this step. Some people don’t want to mess with tilling but they don’t know how important tilling is for their garden. Be certain to till the entire garden area. You want all that good stuff you put on your gardening area to be mixed together really well. This is an important step for you to make sure that you do and not skip to have the best garden for later.

Tip #6 for Getting Your Garden Ready for Fall: Tamping Down
The next step in your Fall Gardening is to tamp down all the garden area. Yes, now that the soil is good and tilled you want the area completely tamped down. You can rent equipment from the local hardware store or garden store to do this.

Another way that you can tamp down the area is to walk back and forth across the area. You will want to do this many times to make sure that the area is good and tamped down. This is an important step for you to make sure that you do and not skip to have the best garden for later.

Tip #7 for Getting Your Garden Ready for Fall: Watering
Many people think that since the garden is going to be dormant all winter it is not important to water it. Well you have to water the garden after you have tamped it down. This will make sure that all the fertilizer and compost has a chance to get down into the soil really, really good. You want to make sure that you give it a really good drenching. You can leave the sprinkler on it for a while. It is best to water it in the evening time so that the water doesn’t just all evaporate back into the air.
This is an important step for you to make sure that you do and not skip to have the best garden for later.

Tip #8 for Getting Your Garden Ready for Fall: Plastic Covering

Now your Fall gardening area should be almost ready for the winter time. You have done a lot of hard work and the process is almost over now. You can really feel pride that you did not skip any of the steps and you worked hard in your Fall garden area.

You need to go to the local hardware store or garden store and pick up some rolls of plastic sheeting. When you get home with the sheeting it is time to cover your Fall gardening area. This is an important step for you to make sure that you do and not skip to have the best garden for later.

The plastic sheeting will keep your garden from getting weeds during the winter. It will also keep other bad things from digging in your garden. In the later time of the year when you are ready to plant your garden again you will take off this plastic sheeting.

Your Fall gardening area is now ready for the winter. When you take off the plastic sheeting later to plant your garden the area will be nice and rich with soil and all kinds of good stuff. This will give you very big vegetables and lots to do for the growing season.

If you are just starting to look for a house, you may want to read ‘Buying a Property’ first. It explains the buying process, from choosing a team of professionals to assist you, to when you receive the keys to your new property.

HOW DO THEY CALCULATE HOW MUCH YOU CAN AFFORD?

After completing a pre-approved mortgage application, your mortgage broker will calculate for you the maximum that you can afford as a purchase price. Mortgage brokers do this by using the information you have given them, together with some ‘rules’ set by the mortgage lenders.

The first ‘rule’ is your GROSS DEBT SERVICE (GDS).

Your monthly housing costs are generally not allowed to exceed 32% of your gross monthly income.

Housing costs include – your monthly mortgage payment, and an amount for property taxes and heating. If you are buying a strata property then it will also include 1/2 of your strata fees.
The total of these monthly payments divided by your gross monthly income will give you your Gross Debt Service.

For Example:

- If your housing costs total $950.00 and your gross monthly income is $4,500.00, then your GDS equals 21.11% – well below the 32% allowed.

- However, if your housing costs total $1,550.00 and your gross monthly income is $4,500.00, then your GDS equals 34.44%. In this case it may be possible to extend the amortization (this reduces the mortgage payments), or increase your equity (which lowers the mortgage needed & therefore reduces the mortgage payments). If these options are not available you should look for a cheaper property.

The second ‘rule’ is your TOTAL DEBT SERVICE (TDS).

Your entire monthly debt payments cannot exceed 40% of your gross monthly income.

This includes your housing costs PLUS all other monthly payments.
The total of all your monthly debts divided by your gross monthly income will give you your Total Debt Service.

What about the other 60% of your income?? This is considered to be used up by ‘normal’ monthly expenses, such as Income tax, phone bills, hydro bills, vehicle or house insurance, entertainment etc.
‘rules’ one and two concerning GDS & TDS ratios are ignored by some lenders when the downpayment is substantial, usually 35% or more, of the property value.

The third ‘rule’ is your CREDIT RATING.

The mortgage broker (or loans officer) will get your permission to obtain a credit bureau report.
Your credit bureau report will show previous and current credit ratings.

For example: you may have received a Sears credit card in May of 1978; you have a credit limit of $3,000; you currently owe a balance of $478; your minimum monthly payment is $24; and you have always paid on time (before the ‘due date’). This is referred to as an ‘A1′ credit rating.

If you have had some credit problems: for example, you have occasionally been a bit late in making a payment (for example twice per year) don’t worry, this will not effect your credit rating TOO much – but please get your act together. It takes seven years for any ‘bad’ information to disappear!

However, if you are usually ’sloppy’ about your payments – for example, if you make payments when you get around to it, you will have seriously hurt your credit rating.
If the problem is not too severe, you may still be approved for a mortgage but you will probably have to pay a higher than normal rate.

If the problems are severe – for example, if you constantly pay late, or if you do not pay your bills, you could be declined for a mortgage. Some lenders will still consider your application if you have a large downpayment or a financially strong co-signor.

Your credit bureau is important because it shows how well (or not) you handle credit. If you do not handle credit well, you will either be charged a higher rate or your application will be declined.

If you have previously declared bankruptcy this will show on your credit bureau for seven years after your discharge.
A few lenders will consider your application two years after your discharge, others not for seven years. In the meantime you will be able to start again with new credit (try gas station cards and department stores first).

THE MORTGAGE APPLICATION

At some point during the purchasing process your mortgage broker will need to complete a mortgage application on your behalf.

The following information will be needed for each applicant and any guarantors.

- Full name and date of birth,
- Address and postal code, how long you have lived there,
- Previous address and how long you lived there,
- Social Insurance Number,
- Number of dependants,
- Home and work phone number,
- Name and address of employer,
- How long you have worked there and your present position,
- Your gross annual income, (see below for self-employed)
- Your previous employment details,
- Your current assets and liabilities,
- How much you have for your downpayment.
- All monthly payments.

THE FOLLOWING ARE DEFINITIONS FOR THE ABOVE INFORMATION

GROSS MONTHLY INCOME

Gross annual income is the total income that you are paid by a company before any deductions are subtracted. Divide by 12 for gross monthly income.

For employment verification your mortgage broker will usually request that you obtain an employment letter from your payroll department confirming your information. A few lenders will allow you to prove income by showing two years of income tax returns and some current pay stubs.

The letter should be on company letterhead and include:

- Your current gross or base income
- The date your employment started with that company
- Your current position or job title
- Your status – full-time (no extra info needed), contract, regular part-time, or casual.

If you are on contract, then the letter must also state:

- the details of your contract (a copy may be required).

If you are paid regular part-time or casual, then the letter must also state:

- The dollars per hour that you are paid,
- The number of hours per pay period that you work,
- That the number of hours per pay period (or annually if seasonal) are consistent.
OR
- provide two years of tax returns
- confirmation of gross income year-to-date.

If you received a bonus last year, then you can only use that bonus if you can show that you have received a similar amount for the past few years. Overtime income is treated the same way. There are other types of income that can be used:

- pension income,
- social security income,
- investment income,
- dividend income,
- income from annuities,
- child tax credits,
- child support income,
- alimony income,
- rental income (including illegal suites in some cases!).
- any income of a continual nature can be included.

SELF EMPLOYED INCOME / COMMISSION INCOME

When income can change from year to year, the mortgage lenders require different information.

Most require either two or three years of tax returns. Most will accept a tax return prepared by an accountant.
If you prepare your own tax return they will also want to see the ‘notice of assessment’ sent to you by the Government.

The lender will then take your average NET income. Some lenders will permit you to ‘add back’ some deductions to your net income. An office expense write off in your current residence is such an example. Other types of income that can be used:

- pension income,
- social security income,
- investment income,
- dividend income,
- income from annuities
- child tax credits,
- child support income,
- alimony income,