Questions New Home Buyers Should Ask


Janet understands. She knows that buying your home is one of the biggest financial commitments you’ll ever make in your life. She knows the sacrifices you have made to get here. She understands the importance of protecting you from start to finish and will ensure your experience is seamless and positive. Janet will guide you every step of the way through the process.

1. What kind of credit score do I need?

One of the most important factors lenders use to determine a home buyer’s eligibility for a loan is their credit score.

Your credit score can be considered the base of the borrowing iceberg as it determines the interest rate a borrower will offer, the amount of down payment required and even if you qualify for financing in the first place. While there is no one magical number, the consensus in the US is that a score of 660 and above will greatly assist you in getting approved for a mortgage.

The higher the score the better for you.

2. Do I need a pre- approval?

It’s not absolutely necessary to be pre-approved before viewing a house, but isn’t it more efficient to go to a store with wallet so you can buy immediately than to find something you like and then have to go back home to get your wallet? That’s what  pre-approval will do – give you a blueprint as to how much an institution is willing to help fund your purchase.

3. How much down-payment do I need?

The average down payment is between 3 per cent and 20 per cent. The good news is, if you are a United States military veteran you do not need a down payment

4. When choosing a mortgage interest rate, should I go fixed or variable?

The interest rate on a mortgage may be the single most important determinant of its affordability. The choice of a fixed or variable rate depends on your risk tolerance and your outlook for the future. A fixed rate offers the peace of mind of knowing exactly what rate your interest will be charged for the agreed term of the mortgage. A variable rate is usually quoted as the prime lending rate +/- a percentage determined by various factors that influence the market. Therefore, a variable rate can be advantageous. There are merits to both options but it’s up to you to decide what you are most comfortable with.