Frequently Asked Questions About Buying A House

Availing a mortgage is crucial when buying a home, as it offers you purchasing power. However, as mortgages can be a challenging concept given the different terms, conditions, and features they come with, you may have several questions but find answers difficult to come by. To arm you with the information you need to understand mortgages and make the right decisions, Nola Stairs has answered some of the most frequently asked questions about buying a house.

1. How much do I need for a down payment?
When purchasing a house, your down payment will depend on the type of property you buy. Your credit situation and if the house is being purchased as a rental, your primary residence, a vacation property, investment property, or a second home that a family member will live in can also affect your down payment. Typically, if you are purchasing a home as a primary residence, you can contribute as little as 5% as a down payment.

2. What other costs can I expect when purchasing a home?
You need to show your bank that you have an amount equal to 1.5% of the purchase price (for example, $200,000.00 would be $3000.00). The 1.5% includes fees for your lawyer or notary public, your portion of the property taxes, utilities, and your BC Government Property transfer tax, which is equal to 1% on the first $200,000, and 2% on the balance. (First time home buyers are exempted from the property transfer tax.)

3. What is the difference between a Lawyer and a Notary Public?
Both a Notary and a Lawyer can do the same job for you, and they charge a similar price. Many people feel that a notary is less expensive, but in most cases, the cost is quite similar. The difference is a Notary public can not give you any legal advice. If something of a legal nature comes up, a notary has to advise you to seek the advice of a Lawyer.

4. Is it better to contact a bank or a mortgage broker?
If you are shopping around for the best rate. It is better to go to a mortgage broker as a broker pulls one credit report, and then that is available for any lender they chose to send it to. If you go from bank to bank, you must draw a credit report at each lender that you go to, and this can negatively impact your credit score. Going to a mortgage broker does not cost any money; they help you obtain rates that are most often less than the banks’, the mortgages they find you have smaller penalties. Most often, they are more knowledgeable about the products and services that each lender can provide. They also have several major banks, credit unions, and mortgage lenders that all offer excellent products

5. Is it important to be pre-approved before shopping for a home?
It is very important to be pre-approved before shopping for a home. You will know how much you can spend based on the preapproval. It will show you the kind of payments you will be looking at, what your interest rate is going to be, and what kind of expenses you can expect.

If you have any more questions about mortgages, get in touch with Nola Stairs. I am a licensed mortgage broker and realtor in Prince George, BC. I have extensive experience in both fields and am fully equipped to help you with your homeownership dreams. I shop for mortgages on your behalf through major banks, trust companies, and private lenders. Through my vast network of lenders, I can offer you better rates and terms on your mortgage. If you happen to be struggling with your cash flow or have poor credit, I can secure a private mortgage to ease your challenges. At the same time, I have the tools and knowledge to educate you about the real estate market.

To learn more about how I can help you, please click here or contact me by clicking here.