Make Sure Your Financing is in Order Before You Buy

My experience in the trade has been a long and knowledgeable one. Yet we encounter the same issues over and over again. You go with your Realtor and view several properties and “Boom” you find the one you love. Immediately you tell your Realtor that you wish to put an offer on this property. Your Realtor asks you again the same question he should have asked when you first met . Is your financing in order and do you have it in writing.

You may walk into your financial institution and stop to inquiry what your purchasing option is, they ask you your income, how much debt you have etc. Based on just the information you gave them they will say you may purchase a home for whatever number of dollars.

This is not a mortgage commitment. What happens is you see something you like and if your dealing with a reputable Realtor he/she will insist you make your offer conditional on financing for a period of time. ( usually five banking days). This is to ensure that in fact you are able to obtain a mortgage commitment. This does not always happen you may tell your Realtor no problem I’m approved and you purchase the home firm only to find out you can not afford to keep the home, the bank wont lend you the capital and loose your deposit and perhaps be sued for any shortfall that may occur during the sale of the home.

First and foremost ask your Realtor to recommend a reputable lender which has proven credentials and will work with both you and your Realtor to ensure a smooth transaction with no unnecessary hiccups.

Your Realtor is the best possible person to advise you on what steps you should take.