Many clients often ask me when the right time is for them to seek financing for their home... Because this happens so often I decided to put a deliverable and single piece of literature that we can give to our clients for future use.
Timeline For A Vancouver Home Purchase
A common question potential homebuyers ask is when the best time is to seek financing when one is considering a Vancouver home purchase. The simple answer is as early as possible. In order to avoid running into credit issues, you should start improving your credit rating and start talking to potential lenders well in advance. This will make it easier and faster for you to secure financing when the right time comes. You stand a better chance to seal a good home purchase deal if your finances are in order when you make an offer for a home for sale.
Here are some tips on how to ensure that you are well prepared financially when considering a Vancouver home purchase.
Three months before making an offer:
Time to get a real estate agent! If you haven’t been working with one yet, give me a call and we can get started knowing each other and what’s involved in the process. It’s also time to work on your finances. Talk to several lenders and compare the different options you see. Find out the monthly repayment requirements and the down payment expected. You may be required to provide some information for the lender to carry out a pre-qualification analysis. This can include bank statements, pay slips, details of your current job and tax statements. This information is used to establish a good price range you should target for a home as well as to approve your application for a pre-approved loan.
Two months before making an offer:
Shop around for a suitable home within the right price range. Compare different homes in the market. Your price range may limit you to a smaller house than what you are looking for. If this happens, you can talk to your lender to see if they can increase the loan amount. Do not make big purchases at this time or move big sums of money around. Your account should remain relatively stable at this point.
One month before making an offer:
You should now have made a selection on a home that fits your needs and your budget. You need about a month to close a home purchase deal. You can now settle on the lending rate with your lender and get a pre-approval letter. Present your letter of offer and the pre-approval letter to the seller. This assures the seller that your finances are in order and you are able to negotiate with solid funding at your disposal. The Vancouver home purchase can now be completed.
When you are prepared well in advance, the process of a Vancouver home purchase can be easy and fast. You will be able to shop around for a good home and negotiate for the best price knowing exactly where you stand financially.
