RSS

How does a lender determine how much money a home buyer can borrow?


I’ve been speaking with a home buyer who asked me to connect him with a mortgage person for a pre-approval.


A mortgage pre-approval is an important part of the home buying process, and the earlier the better.


By speaking with a lender, you’ll understand exactly what you qualify to borrow. This will give you credibility at the negotiating table, a protected interest rate, and guidance to substantially streamline the home search process.


Now, my broker pre-approved my client to buy a home worth $500,000. The client responded by saying, he has “a friend in the business” who told him he could spend up to $650,000.


This is not an indication that his “friend” has some pull that the first mortgage broker didn’t have, it’s an indication that someone has made a mistake.


The amount of mortgage money that you can qualify for is arrived at using mathematics.


It really is as simple as that.


In this video, I explain how these numbers work.




Thanks for watching.


________________________________


Follow me on Facebook and Instagramto receive updates on the Saskatoon real estate market and insights I've gained managing thousands of real estate transactions.


TeamFisher.com hosted nearly a quarter of a million user sessions and displayed more than 2.8 million pages to our visitors. If you have a Saskatoon area home you'd like to sell, we know how to get people looking at your home. Reach out to me directly to engage our team and learn about our processes..


I’m always happy to answer your Saskatoon real estate questions.  Reach out by voice or text at 306-241-6676 or email me at norm at teamfisher.com


Norm Fisher

Royal LePage Vidorra

Comments:

No comments

Post Your Comment:

Your email will not be published
The Saskatchewan REALTORS® Association (SRA) IDX Reciprocity listings are displayed in accordance with SRA's MLS® Data Access Agreement and are copyright of the Saskatchewan REALTORS® Association (SRA).
The above information is from sources deemed reliable but should not be relied upon without independent verification. The information presented here is for general interest only, no guarantees apply.
Trademarks are owned and controlled by the Canadian Real Estate Association (CREA). Used under license.
MLS® System data of the Saskatchewan REALTORS® Association (SRA) displayed on this site is refreshed every 2 hours.