Below is a list of the most Frequently Asked Questions we answer.
If you do not find what you are looking for, we invite you to email us directly or call us. We will take the time to listen to your question and we will provide you with the best answer possible.
How Much Can I Afford to Buy a Home?
Affordability of a home is a bit more complex than most people would think. We have a dedicated page set up to answer this question.
Click >HERE< to visit our "Affordability" page.
What is a Home Inspection? Should I Have it Done?
A home inspection is never a bad thing. Asking whether or not you need one is the same as asking if you need a Tooth Brush.
The truth is, you don’t need it…but the reality is, it wouldn’t hurt. Ok, dental hygiene is probably not the best comparison, but it does get the point across doesn’t it?
A home inspection is completed by a certified individual that studies the structural integrity and mechanical reliability of your potential new home. Structural integrity focuses on the foundation and construction of the property. The mechanical inspection covers your larger components of the house like the furnace, water heater, water softener, fireplace, etc.
Home Inspections are costly and carry their own risks...there's not much legal recourse set up if the Inspector misses something.
The unfortunate truth is that you have little to no recourse in the event that your Home Inspector is in error.
The only recourse you truly have is that you may get your “Home Inspection Cost” recovered – there is no “freebie” if they admit to error.
Don’t feel deterred from a home inspection based on this detail; the Home Inspection could quite possibly point out some major adverse issues to the home that will better educate you to make a wiser decision.
Hey, you could also get Gingivitis from your nasty toothbrush...but that shouldn't stop you from brushing your teeth!
What is the Minimum Down Payment That I Need to Put Down?
5% is the Minimum Down Payment required for most mortgages when a home is being purchased. But...as with "affordability", there are some other dynamics at work.
We've got a whole page dedicated to this question. Click >HERE< and get directed to our Down Payment Page.
What is Mortgage Loan Insurance? Do I Need It?
Mortgage Loan Insurance is also referred to as Mortgage Default Insurance.
And wouldn't you know it - we've got a page dedicated to that too!
Why not click >HERE< and get redirected to our Mortgage Insurance page. You are bound to find what you are looking for right there.
What is a Pre-Approved Mortgage? What is the Benefit of Getting a Pre-Approved Mortgage?
A Pre-Approved Mortgage is the most important step in the entire Mortgage Process.
By getting pre-approved, you are provided a clear cut set of guidelines specific to you and your mortgage. Affordability boundaries are established, you are informed of the required documents that are going to be needed, and you find out if there are any skeletons in your credit closet that you may have been unaware of...like that old Cell Phone Bill you decided not to pay. Oh yeah...that little $300.00 item could be a real problem for you.
The Pre-approval may also provide you with a Rate Hold. Depending on whether or not your broker submits the application to a lender. The rate hold could be up to 120 days in length...it could be only 90 days. Every lender is different and some lenders don't participate in pre-approvals.
It's important to note, a Pre-Approved Mortgage is NOT A GUARANTEE...only when a piece of property is submitted and the file is reviewed by the Mortgage Insurance company (CMHC/Genworth/Canada Guaranty) that a Mortgage Application is truly approved. Pre-approvals usually only reach the Broker or the Lender. But if you have a good Broker, like us here at FOCUS, you shouldn't be worried...we're good at this gig!
Can I Qualify for a Mortgage if I Have Declared Bankruptcy, OPD or a Consumer Proposal
The short answer is "YES." However, there are some variables to consider. You may have to put down 10% for a Down Payment.
You also have to have 2 years of re-established credit with at least 2 new pieces of credit you obtained AFTER you were discharged from your insolvency.
For something like this...we suggest making an appointment with a Broker to see if you meet the minimum requirements.
What Documentation is Required to Obtain a Mortgage?