Colin Hendry

What comes first the House of the Mortgage?

Most people get it backwards. They shop for a home. They make the emotional decision of buying the home of their dreams. THEN, they try to structure the financing for it.. Try to apply logic in how they pay for it.

I am always fascinated by mortgage underwriting “standards” when they don’t even take into account some very large variables that affect an applicant’s cash flow and their ability to repay the loan or maintain a lifestyle they want:

• ·        
• ·        
• ·         How often do you like to eat out or vacation? Are you willing to sacrifice these things for a bigger or nicer home?
• ·        

First, work on your financing. Go the logic route. Work with your mortgage professional to make wise choices. Find out what you can afford; considering your cash flow realities. The mortgage professional should be advise you on ways to properly represent and transfer your assets, how to explain and document your income, and assist you in maximizing your optimal credit score. This counsel will be invaluable in smoothing out the mortgage process and help you get the most aggressive pricing available.

To me, the choice is crystal clear…the mortgage before the house!