Frequently Asked Questions About Buying A Home

Are you ready to embark on the exciting journey of buying a new home? As a licensed mortgage professional at Vic Lehan & Associates, I understand that the mortgage process can be overwhelming, especially for first-time home buyers. That’s why I’m here to help you navigate through the complexities of obtaining a mortgage. In this blog post, I will answer some frequently asked questions to provide you with valuable insights and guide you toward making informed decisions. Let’s dive in!

1. How do I get started to find out what house price I qualify for?

Determining the house price you qualify for is an essential step in the home-buying process. As your mortgage broker, I will analyze your financial situation, including your income, expenses, and credit score, to help you determine a suitable price range. By assessing these factors, I can pre-qualify you for a mortgage, giving you a clearer picture of your affordability and narrowing down your home search.

2. How do I know what my credit score means?

Your credit score is a three-digit number that represents your creditworthiness. It provides lenders with insight into your financial history and helps them assess the risk of lending to you. A higher credit score generally indicates a lower-risk borrower. At Vic Lehan & Associates, we can help you understand your credit score and provide guidance on improving it if necessary.

3. Does a credit check lower my score?

When you apply for a mortgage, the lender will perform a credit check to assess your creditworthiness. While a single credit check usually has a minimal impact on your credit score, multiple credit inquiries for different types of credit within a short period can potentially lower your score. However, when shopping for a mortgage, multiple inquiries from mortgage lenders within a 45-day period are generally treated as a single inquiry, minimizing the impact on your score.

4. How much income do I need to qualify for a house?

The income requirements for a mortgage vary depending on several factors, such as the size of your down payment, your amount of debt and monthly payments, and the mortgage interest rate. As a licensed mortgage professional, I will evaluate your financial situation and help you determine the income threshold required to qualify for a mortgage that aligns with your desired home price.

5. What are my alternatives if my credit is not the best?

If you have bruised or bad credit, don’t worry. There are still alternative mortgage options available to you. As a mortgage agent, I have access to a wide range of lenders, including those who specialize in providing mortgages to individuals with less-than-perfect credit. These lenders consider additional factors beyond credit scores, such as income stability and the amount of your down payment, to assess your eligibility. However, to fit into this category, you will need a 20% downpayment at least.

6. I heard that interest rates are rising. What can I do?

Indeed, interest rates can fluctuate, but that doesn’t mean you’re powerless. If you’re concerned about rising interest rates, you have several options. One option is to secure a fixed-rate mortgage, which offers stability by locking in your interest rate for a specific term. Another option is to consider a variable-rate mortgage, where your interest rate may fluctuate but can be offset by potential savings during periods of lower rates. I can help you explore these options and make an informed decision based on your financial goals.

7. Where is the best place to look for a mortgage?

When it comes to finding the best mortgage, you have a few options. You can directly approach banks, credit unions, or other financial institutions individually or contact me, as I represent many companies and options under one umbrella and with one credit check. As a mortgage agent, I can provide valuable assistance by comparing offers from multiple lenders on your behalf. At Vic Lehan & Associates, we have established relationships with various lenders and access to a wide range of mortgage products. This allows us to find the best mortgage solution tailored to your needs.

8. I have a house already. What will happen when I need to renew my mortgage?

When your mortgage term approaches its end, you will need to renew your mortgage. This is an excellent opportunity to reassess your financial goals and explore different mortgage options. As your mortgage professional, I will guide you through the renewal process, helping you secure a competitive interest rate and potentially adjust the terms to better align with your current circumstances. Renewing your mortgage is a great time to evaluate your long-term financial strategy and make any necessary adjustments.

I’m Vic Lehan, Leamington, and the area’s longest-running mortgage agent. Since 1999, I have served all of Essex County, Windsor, and beyond, providing exceptional service to my clients. As a licensed mortgage professional, my goal is to match you with the right mortgage for your unique situation. With access to numerous lenders at Vic Lehan & Associates, I have the flexibility to explore a wide range of mortgage options. Whether you’re a first-time home buyer looking to refinance or renew your mortgage, I’m here to provide the expertise and personalized service you deserve.

To learn more about the services we offer at Vic Lehan & Associates, please click here. To get in touch with us, please feel free to call us at (519) 326-6410 or email vic.lehan@mtgarc.ca. Don’t hesitate to reach out—I’m here to help you achieve your homeownership dreams.