How Much Can You Afford

Real Estate Agent with Right at Home Realty Inc., Brokerage

It is important to be prequalified by a bank or mortgage company before you start looking for a home.  If you have decided on your lender then get the credit check and a prequalification letter.  Also you may be able to afford a more expensive home than you thought. 

I had clients who thought they were prequalified but no credit check was done.  It turned out they had to have someone co-sign for their loan.  Luckily I had them get prequalified before we started looking at houses. 

Remember that if you get into a bidding war, the bank may not feel the house is worth what you are paying.  The final bid on the house may be more than it is worth.  The bank makes its decision on your ability to pay and the value of the home for security on the mortgage. 

If you are prequalified it makes the Seller feel more comfortable in accepting an offer that is conditional upon finance.

Posted by

Gail Fabiani, Sales Representative


Gails Picture

Right at Home Realty, Inc., Brokerage, 920 Brant Street, Unit #5 Burlington, ON



Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker



Unless buyers are pre-qualified, then their can be a lot of downtime in this business.



Nov 25, 2010 12:35 AM
Janice Ankrett
Burlington, ON
Staging Professional

Sounds like good advice Gail. The fewer last minute surprises the better.

Nov 25, 2010 04:32 AM