Simplifying the Terminology....(Part III)

Where to start....

Oh yeah. For that Jackass that decided to hit the overpass on highway 99 yesterday at around 3pm, I sure hope they throw the book at you.

Couple that with a 5 car pile up on the Alex Fraser Bridge and there was no way to get home until after 10pm last night.

But there was a benefit to it believe it or not. I got to have Dinner with my 2 younger brothers and my Mother. An otherwise nice evening that had the potential to be ugly...

In continuing on with the theme of the past few blogs...here we go.

Appraisal: The process of determining the value of property, usually for lending purposes. This value may or may not be the same as the purchase price of the home.
A few more notes on this as well. The inspection portion or home visit of the process is normally only about 10 minutes. They come in and take a few pictures, get an idea of the home and what it is worth and the rest is done on computer back at the office.
Your appraisal is compared to similar type properties in the same area to determine a value. Your BC Assessed value is not always a less amount.

Closing Costs: Various expenses associated with purchasing a home. These costs can include, but are not limited to, legal/notary fees and disbursements, property land transfer taxes, as well as adjustments for prepaid property taxes or condominium common expenses, if any.
You can use a loose calculation of about 1.5% of the purchase price to determine your closing costs.
eg. if you agreed to purchase a place for $250 K, the costs close this mortgage with the Notary would be about $3750.

Conditional Offer: An offer to purchase subject to conditions. These conditions may relate to financing, or the sale of an existing home. Usually a time limit in which the specified conditions must be satisfied is stipulated. You may here us advise you to make your offer to purchase subject to financing. This means that if we cannot find financing for you, you can get out of the contract.
A smart idea would be to know ahead of time just how much you can purchase by having your broker run your numbers. It takes us on average about 15 minutes and we can give you an idea of how much.

Last one for today and it applies to those looking to refinance their current mortgage...

Maturity Date: Last day of the term of the mortgage agreement simply put. When we need to run the calculations to determine whether your penalty would be IRD, which I covered yesterday, or 3 months interest, we need to know when your contracted mortgage runs out.

Hope this is either helping you understand more of what goes in to a mortgage contract, or at least refreshing what you already know.

If you are going to enter into a debt that is going to take half a lifetime to pay off on average, then you should know all of that which goes in to it.

If you have any questions regarding these or any other terms and or conditions you may have, I am never too busy for a phone call or to answer an email.

Let me help you understand and be more comfortable with the process.

OR for those of you a little more industrious than the next, feel free to look through my webpage to find the answers you seek. www.kevynoyhenart.ca

Enjoy the late summer sunshine unless you choose otherwise.

Kevyn