A Buyer Needs A Plan
One of the first things I ask every buyer is “Are you pre approved?” I imagine that sometimes people think that I am being nosy about how much they can afford. In reality, I just want to know if they know what they can afford.
I don’t even ask what amount they’ve been approved for. All I need to know is that they can get a mortgage for the sort of place we’re looking at. The rest, as far as I’m concerned, it between them, their Mortgage Broker and the Lender who is supplying the funds. Ultimately, this all boils down to affordability for that buyer.
You see, if a buyer goes out and makes an offer on a place and then it turns out they can’t afford it they have wasted a lot of time, stress and probably some money (on things like inspections or perhaps trips to the town they are moving to) before finding out it was for nothing. This is why I ask this question so early on. It saves everyone a lot of headache.
Even if you don’t qualify for a mortgage on the kind of place you had in mind, that conversation with the mortgage broker is still a positive thing. Why? Because now you have a plan. You will know what you need to save in order to get what you had in mind, or better still, you will know what you can afford now. If you’re not in a postiion to afford anything yet, at least now you know what you need to do. All positive steps.
If you come to me with a modest budget, I’ll tell you what your options are. I’m a big believer in leveraging your assests to make your financial life down the road easier. I’ll throw some ideas at you which you may not have thought of on how to do that. That said, an awful lot of people prefer places that are move in ready and cozy over the money maker. Either way, once you’ve worked out your finances, I can tell you what your options are before honing in on a section of the market to take a close look at and choose from. Using market knowledge to get the Buyer the best fit for them is a big part of what us Realtors do.
And this is in short, how you build the framework of your plan with helps from professionals. It costs you nothing to get the plan together. It only costs you money to go through with it.