First step to take before searching for a home to buy!

At one point or another, one will finally decide to buy a property whether it will be a condo, revenue property or single family home. When this time arrives many will simply jump right into action and start visiting properties in areas of their interests and spend countless hours, days and fuel searching. Next, the buyers would typically narrow down their choice from the top 3 properties and decide to put an offer on one, and after negotiations it would become accepted conditional upon obtaining financing. Buyers would then head over to the bank with the accepted offer only to find out that they cannot afford the house they have been searching for months due to their financial situation, more importantly not having been pre-approved to begin with. 

Pre-approved or one might call it pre-qualified, is the very first step anyone who is even thinking about buying real estate. This process is simple, fast and doesn't cost you a penny! Here’s how you should proceed:

1- Simply go to any bank (easier if you go to your current bank) and speak with a mortgage advisor and let them know that you would like to buy a home in the near future. If they are not busy and they have all the necessary information up to date in their system, they will start the process right away. Otherwise they will give you an appointment.

2-If they do not have all the paperwork already, the bank will request you to bring various documentation such as proof of down payment, employment status, proof of recent pay stubs and any other investments to your scheduled appointment.

3-Once they have all the necessary information they will process it right-away and get back to you within 48hrs and let you know what is you maximum borrowing amount, the mortgage rate and term its available for as well what the monthly mortgage payment would be based on a certain purchase price (this will be given to you in a form of a letter for you to keep). The mortgage rate is usually guaranteed by the bank for 90days, in which you must find a house and have a accepted offer otherwise once this 90days guarantee is over, the rate may change and so does you overall cost and you may have to get pre-approved once again depending how long it takes to find another home. As soon as you have the letter from the bank contact your realtor. Both you and your realtor will know your overall budget and you will now know what type of house you can afford and exactly in which neighborhoods!

*****For those of you who are extremely busy and do not have time to go in and meet with a mortgage advisor, there are many mobile mortgage brokers who are available in and out of Montreal to meet with you outside banking hours including weekends, and can meet you anywhere convenient for you. Please contact me as I can refer you or you can simply ask the bank)*****



Vic Patel

Vic Patel

Real Estate Broker
CENTURY 21 Vision
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