Welcome to our Mortgages FAQ page. Here are the most common asked questions when it comes to mortgages. If you have a question that’s not answered we’d be happy to hear from you!
Welcome to our Mortgages FAQ page. Here are the most common asked questions when it comes to mortgages. If you have a question that’s not answered we’d be happy to hear from you!
To assess your capacity for a new home, carefully analyze your taxable income and the monthly debt you’re managing. If you’re buying your primary residence, specifically calculate around 32% of your income. This should cover the mortgage payment, property taxes, and heating costs.
Following this, calculate 40% of your taxable income. Subtract all other monthly payments, such as car loans, credit card bills, and other debts. Use the lesser of these two calculations to determine the portion of your income available for housing-related payments, encompassing your mortgage.
In addition to the ratios, perform additional calculations to establish your overall affordability. Should the comfortable payment amount be below 32% of your income, consider opting for the lower amount to avoid financial strain. Ensure you factor in all other expenses to easily afford basic luxuries.
Mortgage Brokers represent you, not the lender. They operate independently of specific products, enabling them to seek the best package from Chartered Banks, Trusts, Insurance Companies, or Private Funds.
A home inspection is a visual assessment by a qualified professional. It covers major components like the roof, ceilings, walls, and floors, as well as systems such as electrical, heating, plumbing, and drainage. Results are usually provided in writing within 24 hours.
Before deciding to purchase, it’s wise to get a home inspection. It clears doubts, revealing construction quality and potential repair needs. This helps calculate all costs before the final decision, providing a more secure feeling about your purchase.
A pre-approved mortgage guarantees an interest rate for about 120 days on a set amount. Calculated based on borrower information, it’s subject to conditions, like confirming employment and income. Brokers prefer clients with pre-approved mortgages for a clear price range when searching for a home.
Benefits of a pre-approved mortgage include clarity on affordability, simplifying the home search. It eliminates the uncertainty of monthly installments. The significant advantage is rate locking; even if market rates rise, the pre-approved fixed rate is honored. If rates drop, lenders often provide the lower rate.
Are you looking for Business for Self mortgage today? We offer insured, conventional and alternative type mortgages for you. Let us help you by contacting us today.