FREQUENTY ASKED QUESTIONS

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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

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

 

 

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STARTING OUT

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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.

 

 

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FINDING A HOME

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FOUND A HOME

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FINANCING

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SELLING

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CLOSING

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