Contrary to popular belief, no question is a silly question. When it comes to mortgages and financing, some people have not received the information and training they need to ensure that they receive the best care and options possible. Although mortgages can be confusing, perplexing, and difficult, many times borrowers are too embarrassed to ask the simple questions they need the answers to.

So, we’ve taken the time to go through some of the most obvious questions and concepts, and given you the simplistic and important answers you need when deciding on financing:

Can I buy a house before I sell my current home?

Yes, however if you intend to use your equity from your current home, you must ensure than you have adequate financing options, such as being approved for bridge financing. This means you must be able to make payments towards both properties until the closing of your current property. Still confused? Check out this blog post which fully explains Bridge Financing.

Will my scores drop if my credit is checked?

Most likely, no. If you don’t have your credit checked often, and have good credit habits normally, you shouldn’t worry about a credit check being done for pre-approvals or other necessary financing.

Do I pay closing costs as well as a down payment?

Yes, fees such as legal costs, land transfer taxes, and other fees will be associated with the closing of your property. There are many ways that these costs can be paid, by the buyers either directly or through their mortgage costs, but they are never non-existent. Make sure to speak with your agent so you’re aware of exactly what your closing costs will entail, and who will be paying them.

What is LTV (Loan to Value)?

This is a mathematical relationship between your loan amount, and the value of your home as determined by either your purchase price of an appraisal. It’s expressed in a percentage calculated by dividing the loan amount by the value of the home.