How are you going to pay?

This is a question that most people consider before spending money on a purchase such as buying groceries, a vehicle or even shoes.  Surprisingly, this is a question that many seldom think about when considering one of the most expensive purchase in their lifetime… buying a property!

Many people will start looking at homes before they have even considered the most important question – how are you going to pay? 

Whether you are a first time Buyer, or looking at downsizing to a smaller home, the very first step in the Home Buying Process is getting a full preapproval for a mortgage. A preapproval through an experienced Mortgage Broker, or directly through your financial institution, will give you the exact price range where you should be looking. Even if you are downsizing you need to know what you can afford. Just because you already own a property, that does not mean your financial situation will allow you to automatically qualify for a new mortgage, port your existing mortgage, or qualify for bridge financing.  Your income and debt might have changed in recent years.

We recommend that you do not go to an on-line mortgage calculator. It is important that you talk directly to an experienced Mortgage Broker or designated Loans Officer at your financial institution. They will ask specific qualifying questions, complete the proper forms with you, and you will also be asked to provide documentation to prove your net worth.  It is OK to ask for a written preapproval letter.

In Calgary, we are currently experiencing a market with low inventory. Many of our clients have received multiple offers on their properties. Some Buyers are including a preapproval letter with an offer to purchase. When we are reviewing multiple offers with the Sellers, your preapproval letter might help to show that you are serious and can qualify for a mortgage.

Talking to your financial planner is also important for those in their retirement years. Your financial planner will advise you on the right price range to purchase your next home and investing your surplus equity. They can also give you professional advice when you are considering selling your home and moving to more supportive living such as a retirement residence. Private retirement residences are typically month to month lease payments and it is important to know that you can afford this lifestyle.

Buying or selling a home doesn’t need to be overwhelming! It is important that you work with an experienced and knowledgeable Agent. For 32 years we have helped guide many families through the real estate process. For a free, confidential consultation call us at direct at 403-605-3774 or info@TheMolzanTeam.com

We are here to help!