Understanding Financial Terms for Buying Your Home

First time home buyers can and often do meet with a bewildering array of terms and language that are critical to understand. For example, do you know...

  • What a mortgage is? Here's a quick 1.20 min video

How about...

  • What a "portable mortgage" is? That's a mortgage that permits the mortgage borrower to transfer their mortgage balance to a new property and with the same lender without penalties. The borrower will transfer the mortgage to the new property with the exact terms that remained at the time of the transfer.
  • The difference between "pre-authorized" and "pre-approved" for a mortgage? When you are "pre-approved" the bank is saying that you should be able to borrow $XX amount based on your income. HOWEVER it's not a guaranteed. If you obtain "pre-authorization" you now have a firm commitment from a lender to loan you a set amount with pre-agreed terms. Once you find your new home that falls within the terms including an approved appraisal for value, you will almost always get your mortgage - failing any last minute surprises.

Have you been p-approved or pre-authorized, ready to start looking and wondering what you can expect to find? Contact us to help you narrow your search! 

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