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WE GOT THE HOUSE!

How to prepare to purchase
a house in a Seller’s Market.
by Heather Plane, Exit Realty Group

standards for this ratio, you’re good to
old for $100,000 over asking! Great go for a more detailed prequalification.
words to hear if you’re selling a Using the past two years of your
Shome and a buyer’s nightmare. But income tax returns, they will pull your
there’s good news if you’re thinking of credit profile and see if there is anything
purchasing a home. With a bit of prepa- haunting you from your past. There
ration, some great buying strategies could be an old telephone bill, or
combined with quick action, when perhaps a loan that you paid off but
you’re ready, you can be the proud never got it taken off your credit report.
owner of a home in the Quinte area. Unfinished business can cause you to
When purchasing what may be the lose valuable time in the deal process.
biggest investment you ever make in We’ve seen more than one deal fall apart
your life, you don’t want to take it while people wait for the third party
lightly. You need to be prepared. release from an old loan. So a new credit
Get to know your financial status, be report is a good thing – it can help you
clear on what downpayment you have fix any glitches that could lose you an
saved and how fast you can access those opportunity.
savings. BE PREPARED! Now you have your credit fixed,
Ensure you have saved enough for you’re prequalified and you’ve got a
the downpayment – you need to have good idea of your borrowing capacity.
at least 5% if this is your first home, and You have a budget. You have your
make that 20% if you want to avoid downpayment. You’re confident that
mortgage insurance costs. you can now buy a house. Not quite yet!
Call your Mortgage Broker and get Remember, the house also has to qualify.
prequalified. Did you know there are So when your Offer to Purchase a home
is accepted, your lender must confirm
two levels of loan qualification for you? the house is actually worth the price you
And the property you’re buying must have offered.
also qualify for the loan? With this process of final qualification
The first level of prequalification is and getting the “Letter of Commitment”
quick. The Mortgage person asks about from a lender, the house must have the
your income and your debt. They do a value of a Buyer’s Offer. If not, then the
quick income-to-debt ratio calculation Buyer has to make up the shortfall.
and if you fall within the bounds of set

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