Let’s say that one day, you drive by a house for sale and decide to look up the details online. You discover that this house is perfect! You immediately contact the listing agent (or perhaps a friend or family member who is an agent) to schedule a showing. You can’t let this one get away! You tour the home, fall in love, and you and your Broker write up an Offer to Purchase. But, wait, do you know that you can afford to buy this home? You know you will need a mortgage, but you do not know how much you can borrow, and will it be enough to get you into this home?
Pause. Rewind. Let’s start over. Before that glorious day when you drive by that perfect house, have a Pre-Qualification or Pre-Approval in your pocket. Knowing your purchasing power helps your Broker write a strong Offer to Purchase. Even if you haven’t driven by that dream home yet, knowing your budget will help your agent better select properties that fit. Looking at homes that are way outside of your budget deflates your hopes. But, going into the house hunting process already knowing what you can afford sets you on the path to a fun, exciting, and rewarding adventure!
To Discover more, watch our video “Home Buying Made Easy!”