FAQ
FAQ
Frequently Asked Questions
Am I Ready to Be a Homeowner?
There are a lot of factors to consider before becoming a homeowner. If you are prepared for a long-term financial commitment and have the resources to maintain a property, buying a home may be right for you!
Is Renting or Buying Better?
Both renting and buying can be good options depending on your personal requirements. Renting offers more flexibility and predictable monthly expenses while owning a home can provide stability, tax benefits, and a pride of ownership.
What Are Lending Ratios?
Lending ratios help to define whether individual or institutional borrowers will be able to fulfill financial obligations after obtaining a loan. This includes the debt-to-income ratio, the housing expense ratio, and the loan-to-value ratio.
What should I consider when purchasing a home?
Before purchasing a home, it is important to understand your long term goals and financial stability to determine if home ownership is right for you. If you have already made that decision, you will need to have enough money saved for a down payment and a good credit score.
Do I Need a Home Warranty?
A home warranty can offer reassurance for both buyers and sellers. The warranty can act as an additional layer of financial protection in the case of unforeseen repairs and emergencies.
What Should I Expect at Closing?
Closing costs will typically range from 1.5 to 4 per cent of the home’s purchase price. These include things like legal and administrative fees, home inspection, mortgage default insurance, Land Transfer Taxes, lawyer fees, etc.
What Is Pre-approval?
A mortgage pre-approval means a loan officer has looked at your finances and credit history to determine how much money you can borrow, how much you could pay per month, and what your interest rate will be. However, a pre-approval is not a guaranteed mortgage.
Am I Ready to Rent?
While renting is less of a commitment than buying a home, it is still important to ensure that your finances are in order before making your decision. Generally, renters shouldn’t pay more than 25% to 30% of their gross salary for rent in order to manage other expenses and savings.
What Should I Offer?
Determining how much to offer for a house is not often a simple decision. Depending on whether it is a buyer’s market or a seller’s market, new homebuyers can offer above or below asking price. To ensure you are making the right decision, discuss with your realtor.
how Can I Ask You for Advice?
The Mohi Real Estate Team can help you find your dream home. For more information feel free to contact us to learn more about how we can help you today!