Engel Volkers - Vancouver - Flipbook - Page 52
E n g E l & Vö l k E r s | Va n c o U V E r
Common mortgage questions
thinking of buying a new home?
We've got the answers to the questions everyone asks about mortgages.
Am I better o昀昀 renting or buying a home?
How much do I need for a down payment?
the decision to rent or buy a home differs for everyone, as
there can be benefits to both, depending on how long you
plan to live in your home. We can help you weigh the pros
and cons to see which option is best for you. If you decide
buying a home is in your future, we have amazing lender
connections throughout the area to refer you to.
Your down payment requirements will depend on your
lender, the type of home loan you choose, and the type of
property you are buying. Your required down payment can
range anywhere from 5 - 20 percent of the home’s purchase
price. lenders offer a variety of different loan programs
and each program has different rules regarding the down
payment required.
What are the advantages of a home purchase?
Buying a home gives you a sense of investing in a
community you love and pride for achieving home
ownership. additionally, financial benefits come into play
such as tax savings, building home equity and no longer
paying rent to someone else. With many unique downpayment options available, a home purchase may be easier
than you think!
What’s my 昀椀rst step?
the mortgage pre-approval. Unless you are paying cash,
you will need to get a mortgage. In order to know how much
home you can afford, you will need to get pre-approved for
a loan. ask for recommendations, and meet with a lender to
get the process started.
How long does it take to buy a home?
With newer guidelines designed to simplify and consolidate
some of the required loan disclosures, it changes the
timing of some activities in the mortgage process. Up to 60
days is the new normal but each situation is different.
What other fees can I expect, besides down
payment?
Mainly loan origination and the cost to close. the down
payment is usually the largest cost associated with buying a
house. Your loan officer will be able to help you determine
how much you can expect to pay towards loan origination
and closing costs.
What are the closing costs?
How much can I a昀昀ord to borrow?
Everyone’s financial situation differs and it’s important to
recognize what you can comfortably afford to borrow.
Your mortage broker will help you determine this while
[in general] factoring in:
• Your
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debt-to-income ratio (this is your total monthly
payments as a percentage of your gross monthly
income).
the amount of cash you have available for a down
payment and closing costs.
Your credit history.
the value of the property you want to purchase.
closing costs can include, but are not limited to items such
as appraisal fees, title insurance fees, attorney fees,
pre-paid taxes, and documentation fees. these items are
different for each customer due to differences in the type
of mortgage and the property location, etc. You will
receive an estimate of your closing costs in advance of your
closing date.
