When lenders qualify you for a mortgage, they look at a number of things. They’ll check your credit, income, assets and they’ll take the property you are buying in to consideration as well. When they determine how much you qualify for, they will look at your debt ratios. In simple terms, your debt ratio is […]
Category: House shopping
Why do I qualify for less if I am taking a term shorter than 5 years?
When lenders qualify you for a mortgage, they look at a number of things. They’ll check your credit, income, assets and they’ll take the property you are buying in to consideration as well. When they determine how much you qualify for, they will look at your debt ratios. In simple terms, your debt ratio is […]
What is the Condition of Finance (COF)?
Whenever you put in an offer to purchase a home, their will be a variety of conditions that must be met. One of those conditions, is proving that you can actually get approved for a mortgage and be able to pay for the house. This is called the condition of finance. If you are working with […]
What is a “rate lock” and how long is it good for?
Rate locks are designed to protect you from rate changes that may occur while you are house-hunting. They act as a price “ceiling”, which means that if rates rise during your rate lock period, you get to keep your lower locked-in rate. If rates drop on the other hand, then you can let go of your […]
Can I borrow money to use as a down payment?
Yes, you can 🙂 We will have to include the payment for the loan in your mortgage application and you will have to have good, established credit (ie. credit score of 650 or higher) for at least two years.
Do I have to get a home inspection done?
In most cases, a home inspection is not mandatory for your mortgage approval. Buuut it’s a good idea to get one 🙂
What else will I need to pay for in addition to my down payment?
What you’ll need for sure: closing costs (ie. legal fees, registration of mortgage, land titles, et.) Budget about 1% of the purchase price for closing costs. home insurance moving expenses utility hook up Not mandatory, but would be wise to factor in: home inspection life/disability insurance for you and your family furnishings maintenance and repairs […]
What is the minimum down payment for a rental property?
You’ll need at least 20% down to buy a rental property.
Do I have to use a lawyer to buy my house?
Yes, it’s a must, actually 😉
Do I have to get an appraisal?
That’s a firm maybe! 😉 Confirming the property value is mandatory in every mortgage transaction. Sometimes this is done by getting a full appraisal, but not always.