The market has slowed down so you have some breathing space to shop for a home without a half a dozen people waiting behind you to offer over the asking price with no due diligence conditions.
However, the government has recently imposed “stress tests” for mortgage approval thereby making it more difficult to qualify for a mortgage.
In addition, some “experts” are predicting that prices will soften in the foreseeable future, although such predictions are wrong almost as often as they are right.
So if you can pass the stress test and have the cajones to buy when few others are (as Warren Buffett says, “Be fearful when others are greedy, but be greedy when others are fearful”), then your first stop is to get your financing in order.
To figure out your price range, talk to a mortgage broker or banker to get pre-approved for financing.
But before you even do that, AVOID THESE DOZEN “NO-NO’S” according to senior mortgage advisor, Karen Gibbard:
- Buy a car;
- Change jobs;
- Change banks;
- Open new credit facilities;
- Move your money around;
- Make a large deposit to your bank account;
- Buy anything new on credit;
- Authorize anyone to make credit bureau enquiries;
- Guarantee or co-sign anyone else’s mortgage or other debt;
- Stretch the truth on your mortgage application;
- Spend the money you were going to use for closing costs;
- Overextend yourself –even if you qualify for it;
Buying a home is a stress test in and of itself, but there’s no need in making it worse than it has to be by doing things that the banks don’t like.
Offices in Vancouver and White Rock
DISCLAIMER: The foregoing is not legal advice. It is for information purposes only. When undertaking a financially significant transaction such as a sale or purchase of real estate it is always recommended that you obtain professional advice to assist you to make the best decision. If you don’t know a good realtor, mortgage broker or banker, we can help you with that selection as well.