FREQUENTY ASKED QUESTIONS
under construction
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STARTING OUT
Am I ready to Buy
How to begin the Process
Renting vs Buying
How much can I Afford
Selecting the right Agent
Determining Needs vs Wants
FINDING A HOME
Selecting a Community
Local Schools
Home Prices
Old vs New
What to Look at in Homes
Questions to ask when looking
How many to look at
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FOUND A HOME
Making an Offer
Issues to consider when buying
What does a Home Inspector do
Types of Inspections
Lead / Asbestos / Power lines, etc
Do I need a lawyer
Do I need Insurance
Warranties
FINANCING
What is a mortgage
Types of mortgages & rates
Paying off you mortgage
Government incentives
Steps to get a mortgage
What is a credit history
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SELLING
When is a good time to sell
How can I get more for my home
What do I need to do to sell
Can I sell it myself
What is an open house
What do I need to tell buyers
How does the offer process work
What are my options with the offer
Can I change my mind or stay longer
What to leave when closing
Should I buy or Sell first
CLOSING
How much does it cost to close
Final walk-through
What to expect on closing day
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STARTING OUT
If you can answer "yes" to following questions, you are probably ready to buy a home:
- Do I have steady, reliable income? Have I been employed for the last 2-3 years on a regular basis?
- Do I paying my bills on time and have good credit history?
- Do I have few outstanding long-term debts, like car payments?
- Have I saved money for a down payment?
- Am I able to pay a mortgage every month, plus additional costs (utilities, repairs, property taxes, etc)?
Consider your your situation and future goals. How much monthly mortgage payment can you afford (see below question)? What type & size of home would you prefer? Where do you want to live (city, town, building, etc)? Talk to friends and family, drive through neighborhoods, and look at the listings.
Renting: You don't need to deal with or pay for upkeep & maintenance, but you lose the chance to build equity (return on investment) & freedom to decorate without permission. You abide by the landlord's rules and needs.
Owning: You are building equity with every mortgage payment. You have freedom to modify you home as you wish and have security in your home.
The lender looks at your debt-to-income ratio, which is a comparison of your mortgage payments and non-housing expenses to your gross (pre-tax) income. Two ratios are used:
- Total debt service ratio (TDS): compares income to mortgage payments, property taxes, condo fees (if applicable) & heat
- Gross Debt Service Ratio (GDS): compares income to above PLUS loans (car, student, etc) & credit cards
Typically, but based on your individual situation, the TDS can be as high as 32% and the GDS as high as 42%. The lender will also considers cash available for down payment and closing costs, credit history, etc. when determining your maximum loan amount.
FINDING A HOME
FOUND A HOME
FINANCING
SELLING
CLOSING
