Brampton Real Estate home

FREQUENTY ASKED QUESTIONS

under construction

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

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

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

 

 

 


STARTING OUT


HOW DO I KNOW IF I'M READY TO BUY A HOME?

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)?  

 

HOW DO I BEGIN THE HOME BUYING PROCESS?

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.

 

HOW DOES RENTING COMPARE WITH BUYING A HOME?

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.

 

HOW DOES THE LENDER DECIDE HOW MUCH I CAN AFFORD?

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


 

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