This week I'm releasing Mortgage Monday on Tuesday because Thanksgiving had me feeling Tryptophantastic, if not a little relaxed and cozy with the family. So, short and sweet for the short work week, I'm going to show you how your mortgage can help you beat out the competition in a bidding war.
The list price of a property is becoming less significant as buyers are shifting their focus to the monthly carrying costs of their mortgage. Most buyers are willing to pay up to 20 per cent more for a home because the monthly payments only go up marginally. What they're not considering, however, are the huge sums they are paying over the asking price if they find themselves in a bidding war situation.
This brings me to one of the most important weapons in a bidding war: getting preapproved by your bank or mortgage company. Before you enter a bidding war, you should know what you can carry, and how high you can go in your offer.
So, before you leap into bidding war thinking you’re only paying an extra $85 a month on your mortgage, number crunch everything from groceries to child care to make sure you can afford it. Even just $85 a month might be too much of a stretch over the term of your mortgage, especially when interest rates go up and you’re in a variable rate situation. Don’t cheat yourself out of daily expenses just to look good on paper.
As always, here are the week's best rates from Bryan Guertin at Mortgage Intelligence:
It's also imperitive to choose an agent who has your best interest in mind. Your job as a buyer is not to seal the deal, it’s your agent’s job and they need to know what your limit it is – and respect it. For this reason and many more, you should give me a call sometime!
Thank you for reading.
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As always, if you would like to discuss your current real estate situation, I would love to offer my expert knowledge. You can reach me at 905 339 5270, or by email at firstname.lastname@example.org.
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CENTURY 21 MILLER REAL ESTATE LTD.
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