Purchasing a Home

 

If you are in the market for a new home (whether you are a first time home-buyer, a second or third time home owner or the experienced investor) your first step is to obtain a pre-approval.

The pre-approval starts with your own personal budget. Examine your monthly finances; be honest to yourself, keeping your lifestyle in mind. This will give you a general idea as to how much you have left over each month to go towards home expenses. Bring your personal budget with you when you meet with one of Nova Mortgage Broker at Verico Nova. They will review your budget along with your financial history and application and give you a more accurate idea of how much you can borrow. As mortgage products vary amongst lenders, your Nova Mortgage Broker will also explain the varying mortgage products that are available based on your personal situation. Your pre-approval amount will also give you a better idea of the price range you should be looking in.

When you get the pre-approval, the lender will give you a rate hold which will protect you in case interest rates increase. Rate holds are valid between 90 days to 6 months. If interest rates rise within this time, you will be guaranteed the lower rate that you have held and if rates drop, you will be eligible for the new lower rate.

Pre-approvals also give you more negotiating power when it comes time to make an offer. A pre-approval shows the seller that you are serious and capable of buying the home which is important as they do not want to go through the process of accepting an offer that may fail due to the buyer’s financing. This will also give you a leg up on your competition in the case of multiple offers.

Purchase contracts will often have subjects which require buyers to secure their financing within the next 7 to 10 days. By meeting with your Nova Mortgage Broker ahead of time and going over your options, you will not be rushed into a mortgage product that might not be the best choice for you and your family.