MORTGAGE CHECKLIST

by Akil Franklyn

Just because many people have completed a journey, does not mean the road is straightforward. It’s hard to know the pitfalls and twists a road takes unless you walk it yourself. Six months ago, I decided that I no longer desired to be classified as a renter. I would stride with confidence into my financial institution with a particular house in mind, apply for a mortgage and start my life as a homeowner. I was then presented with so many documents, fees and conditions that I thought maybe another few months as a renter might not be so bad. Six months later and wiser, I am setting out on this road to home ownership again, and we can find out the steps first-time homeowners have to take, together.

While it may be tempting to look at houses on the market to see what is available, pick a house and try to make that dream happen, that is not the first step of the journey.

1) Obtain a mortgage certificate.

My first visit was to my preferred lending institution with your job letter and two most recent pay slips as I am employed with a company. If you’re self-employed, recent tax filings and bank statements are required here. This lets the financial institution have an idea as to exactly how much you qualify for. Some sellers won’t start negotiations unless you have this certificate. You don’t want to find the house of your dreams, fall in love with it, and then realise that based on your income, you won’t be able to afford it. At this stage, you can discuss with your lending institution what kind of mortgage you will be getting. Some places may offer between 80-95 per cent financing, where you would still have to pay some form of a deposit, and some places may offer 100 per cent financing, up to a certain amount. Something to keep in mind, 100 per cent financing will mean a higher interest rate and will probably lower the total amount that you will qualify for.

2) Take a look at the market.

With a set figure to work with, it’s time to look around for a house in your price range. You can do this yourself or you can go via the route of a realtor. Alternatively, another option for potential homeowners is to build their own house. You can find a plot of land and have a house built to your specifications, provided it falls within the budget. I have decided to go with a realtor as they know the market far better than I do. I go with my mortgage certificate and give them an idea as to what I am looking for, and I let them get to work.

3) Keep legal fees in mind!

This was my first real taste of disappointment in my home ownership journey. I genuinely thought that if my financial institution approved me for a $350 000 mortgage, then that means I would be able to get a $350 000 house. I was sadly mistaken. Legal fees have to be taken into consideration. If you chose to pay the legal fees out of your pocket, then you will be able to get as close to your mortgage certificate as possible; however, I have to inform you that legal fees can range from as “low” as $4 000 and reach up to $15 000 (this is the highest I have heard, but I would not be surprised if they can reach higher). If you are anything like me, you just would have felt a sinking feeling in your stomach when you read the figure of $15 000. I will offer you a reprieve from that financial dread and inform you that banks and credit unions allow you to pay legal fees out of your mortgage amount so your $350 000 qualification amount is more than likely going to be approximately $340 000. I was advised to assume legal fees are $10 000, subtract that from your qualification amount, and use that new amount as your house budget.

4) Make an offer.

Once a house has been found, here is where the loan will begin being processed by the lending institution. Depending on the amount of time that passed, you may have to resubmit some documents such as a job letter and payslip or your relevant financial information as these are only valid for around three months. The offer letter stating there is intent to sell the house to you as well as a valuation of the house also has to be presented at this point. Having a life insurance policy is also necessary. I already had a group life insurance policy from my job; however, that was not enough. An individual life insurance (or term insurance) policy is needed, equal to or exceeding the value of the house. A house insurance policy or quotation has to be presented at this point as well. As long as the lending institution does their assessment and your mortgage has been approved, they will draft an offer letter that will have all of the conditions and information about the mortgage. An instruction letter is then sent to the lawyer, so they can begin drafting the actual mortgage agreement. At this point, the correspondence is mainly between the legal teams.

Although there is still more to be done, there is not anything further for us to do, but wait. They are monetary disbursements to be made to the owner of the property, but the legal team and the lending institution take care of that. The process usually takes on average about three or four months if everything goes smoothly, and at the end of it, you would be in your brand-new house.

For me this was a learning journey because I did not have all of the steps, so there was a bit of starting over for me to do, but I am hopeful that this should give you an insight as to what you need to do to be called a homeowner.

by Dominique Toppin

The kitchen is usually considered the heart of the home as it is the one place where you are sure to find family and friends gathering to cook, eat and enjoy each other’s company. Since this space plays such a big role in bringing people together, there is a sense of pride that comes from having a nice, welldesigned kitchen area.

A new kitchen can be a costly and overwhelming project to take on, but there are a range of ways that budget kitchen ideas can transform your space, without it becoming a full redo. There is plenty which can be done through imagination, low-cost materials and a reliable handyman. Take a look at the below and explore a collection of simple, budget-friendly changes that can go a long way into transforming your kitchen to tip-top shape.

Clean it up

Cleaning your kitchen costs little but will make a huge difference to the overall space. It is also one of the quickest ways to ensure your kitchen looks fresh and new.

Declutter and organise

When looking to upgrade your kitchen, it is best to start decluttering and bringing a form of organisation to the area. This will instantly refresh the look of the kitchen and spark ideas on what else can be done with the space. Dividers and organisers can be used for drawers and cabinets can also revive the aesthetic and allow you to make the best use of space.

Cabinet makeover

A kitchen makeover does not require much and a fresh coat of paint can easily make everything look fresh again. Take time to carefully inspect and ensure that the frames and door are structurally strong to undertake the necessary cleaning and repainting. A new coat of paint for a cabinet makeover can take the kitchen from gloomy to bright while being budget-friendly to the wallet.

A new kitchen sink

A shiny new sink, along with a new pull-down faucet and countertop, will jazz up a kitchen as much as new flooring and appliances, and for considerably less money. Maybe go for a new modern look with a simple and sleek fitting.

New lighting fixtures

A common missing element in most kitchens is good lighting. We all know that a well-lit kitchen can play a significant difference in its overall look. Therefore, upgrading the lighting is a way to add a fresh dose of style and substance to the space. Even if you do not envision a major kitchen remodel in your future, a simple lighting swap – from adding some architectural track lighting to installing a dramatic chandelier, these new lighting fixtures can act similar to painting –transforming in an inexpensive way.

Install a backsplash

Installing a backsplash is an inexpensive way to upgrade your kitchen. Whether it is part of a kitchen remodel or just a mini-makeover for your kitchen, a backsplash is a great design element that enhances and ties together the other decorative aspects of your kitchen, including the countertop and flooring.

Add some greenery

Greenery such as plants, herbs and flowers can bring a wave of new life to your kitchen. This is a really easy and inexpensive way to stylise your counters and shelves. Therefore, if you have access to fresh flowers or have nice artificial plants elsewhere in the house, bring them into the kitchen and display them.

Add decorative finishes

Small changes and decorative additions such as paintings on the wall can also go a long way to making a big difference to your kitchen. For countertop items, appliances and hardware should typically match the overall look to ensure a measure of consistency and cohesiveness.

How are you beating the increasing heat?

Each year, records are set the world over for scorching temperatures, and it’s not going to get any cooler any time soon. Tacking on extra AC units to your monthly summer bills might offer a bit of relief at night, but running a unit all day is a surefire way to see savings vanish.

No matter your income bracket, the cost of energy in Barbados is beyond the majority of countries in the world. Currently, Barbados sits as the 26th most expensive country for electricity, while being the 6th most expensive country for gasoline.

Taking a quick dip is definitely the best way to beat the heat of summer days. Of course, going through the long and difficult process of installing a pool certainly isn’t for everyone.

Even a small in-ground pool is likely to run between $20,000 and $100,000, obviously depending on size, design, and difficulty of installation.

However, the addition of a pool can not only afford an area for activity and a place of refuge from the heat, but it will also greatly increase the value of your home. Even a small above-ground pool can become a centrepiece for your backyard and turn a regular garden into an oasis.

There are many options for creating a unique space with the addition of a little soaking area. Natural-looking rock siding, waterfalls, wood panelling, tropical flora –the additions that can be made to enhance the appeal of a small pool can also craft a water-filled hole in the ground into an area of tranquil beauty.

Of course, the most popular pool trend has always been the regular rectangle. If you’ve got the means, infinity pools have been the rage for quite some time, and that trend doesn’t seem to be going anywhere anytime soon.

The Pool & Hot Tub Alliance Builder of the Year 2022, Joseph A. Vassallo, asserted that the top trends for pools last year were fire in various forms, scuppers – copper or stainless steel, modern style – strong lines, neutral colours – beige, ivory, taupe, black, grey, and shades of white, and travertine and marble travertine stone decks.

Typically, pools tend to have large deck areas that accompany them. However, you don’t need a huge open space to craft a creative pool space. A small plunge pool with natural looking rock around the majority of its edging will create a sense of an intimate sanctuary.

The cheapest option for anyone interested in adding to their backyard appeal is definitely going to be an above-ground plunge pool or even a hot tub. Of course, you’re unlikely to use the heating function during the day, but a little warmth in the cool of the night will make you feel even cooler when you exit and return indoors.

You may think an above-ground pool or Jacuzzi may stick out like a sore thumb in your backyard, but all it takes is some wood panelling, a few shrubs, a royal palm or several, and you’ve got yourself a whole separate space that also has a natural flow and feel.

Whether you plan on going big with a large pool hosting a shallow shelf for relaxing in the sun while not being fully submerged or going for a plunge pool option as a tiny oasis, the greatest value a pool addition brings will be in the memories made around and in its waters. And the pumping up of property value isn’t a bad bonus either!