Christian Forums

Hi,

I am new to this forum. I am married and we have two children. We are now thinking about settling down in the suburbs of Toronto. God willing, we will have a peaceful life. Obviously, we will require financing for buying the house.

We have a good credit score (670) and so, I hope we would get a mortgage loan without high rates. I would like to clear the doubt between the appraisal and downpayment. I was going through the tips for first time home buyers when I saw this.LINK REMOVED  We talked with some real estate agents and we will be able to pay 20% down on the purchase price. But, that would also leave us with very little savings.

These are the confusions now. What is the advantage of an appraisal? What should I choose for the duration of a mortgage loan (15 -20 yrs) Should I risk paying the appraisal with little savings left?

Need suggestion and advice.

Been awhile since I bought any financed property. If I remember correctly the appraisal is the document from which they initiate a home loan. Which is then secured by the title when the property closes. But your in Canada & I'm down in the southern US & I don't have a clue about Canadian Real Estate regulations.

I'd say don't buy too much house. But make sure you buy what you need for your family. Especially if you plan to stay in that house to raise your family. Stable neighborhoods with long-term prospects of staying that way. Excellent schools. Reasonable commute. Quality built & handsome enough that your wife & family love it as their home.


The differences between getting a longer or shorter, would be based on your reasonable long-term ability to pay the note. If the short note would be easy, take it pay it off quick. If it would not be easy take the longer term note because it could give you a cushion if things got tight. If things get fat you could pay down the note quicker by paying extra principal early.

My advice: get a fixed rate mortgage.  Adjustable rate mortgages are just a bad idea.

Can you even get financing without getting an appraisal?  Where I am, part of the criteria used to determine the rates is based on the value of the home versus how much is being borrowed.

5 years back a good friend that so happens to be a doctor and a man that invests quite a bit in real estate, urged me to go with a variable, I opted for the fixed but I would have saved a couple thousand had I taken his advice.


Appraisals here are pretty simple, if the dwelling is standing it will meet minimum requirements for lending, however if the mortgage amount appears excessive a private appraisal may be necessary, we didn't need an appraisal for this last home, the city assessment was fine for the amount we needed.


If the bank requires a home inspection, do yourself a favour a research one and hire them yourself, the ones the realtors point you toward are always working with the realtors best interest in mind of "closing the deal".