What is the right time to get the mortgage pre-approved?
Answer: Before even starting the home search, make sure you have a pre-approval of the mortgage. There cannot be a more unfortunate instance than the moment you stuck in the process of home buying due to the mortgage not getting approved after spending months in searching a perfect home in the best deal. A pre-approved mortgage from the bank helps you and the agent to get an idea about how much you can afford, and the agent can provide deals accordingly. You can get in touch with the bank to get the pre-approval deals. A written pre-approval is sanctioned within 24-72 hours.
2. Difference between a conventional mortgage and high ratio mortgage?
Answer: The difference between the two is as follows:
This is a very known mortgage type where the home buyers is supposed to put at least 20% of the total purchase price as the down payment, i.e. the bank loans up to 80% of the total purchase price or the appraised value, whichever is lower between the two.
High Ratio Mortgage:
If the buyer does not have the resources to give the full 20% of the down payment, then they can go for high ratio mortgage. This allows the buyer to buy a home with a down payment of 5%.
3. Which is more viable- Continue to rent or buy my own house?
Case 1: Renting:
The main advantage here is that you will not be required to spend on the maintenance, and you will enjoy the flexibility of shifting as per your own convenience. You also will not have to worry about the taxes. Renting is always cheaper than paying the down payments.
Case 2: Buying:
Biggest advantage of buying your own house is that you are no longer paying for someone else’s mortgage, rather paying for your own. You will also get the capital appreciation, as and when the value of the property goes up. You no longer will be requiring getting the assistance of a landlord for any permissions.
4. Is a home inspection necessary while buying a house?
Answer: For every buyer, it goes without saying that a home inspection is crucial and should be done before boiling down to buy a house. A home inspection helps in ensuring that you get no surprises when you move. In case of any defaults or anything else, you could either ask the seller to fix it or reduce the price of the house accordingly.