The Truth About The Home Buying Journey
Buying one’s first dream home is an experience filled with emotions for all home buyers, the excitement of shopping, finding a place to call home for the foreseeable future, closing on the purchase, renovations, and moving in, all providing moments to remember for life. At first glance, arranging mortgage financing may appear to be a confusing experience but it doesn’t have to be that way if we are well prepared. Today’s home shoppers are savvy and know how to navigate the internet to find the answers to their questions.
As an expert in the field, Mortgage With Vadim wants to help you understand the entire home buying process. This is why here is the overview of the home buying journey and its hidden gems.
When you find the condo or house of your dreams and want to make an offer, do you need a financing condition? Unless you can pay cash for the home, then yes, you do. That little phrase “conditional on financing” is an important protection for buyers. When an offer to purchase is made “conditional on financing,” we gain the time needed, i.e., three to five days, to ensure that you are fully approved for the necessary funds. Your lender needs to feel as comfortable about the property as you do and will likely conduct an assessment. After all, the property is the lender’s security if something goes wrong. Even if you have a mortgage pre-approval, the lender may decline the property for reasons such as:
- The address may be just outside the acceptable location perimeter for the lender.
- There might be concern over former environmental matters or zoning issues.
- The appraisal may not match the offer you’ve made.
Don’t let the rush to buy overcome common sense. A pre-approval is a guideline only; a lender could disregard it, especially if your income or financial situation has changed. That “conditional on financing” gives you time to confirm with the lender and to withdraw the offer if the lender’s queries turn up something negative about the house.
An offer without conditions leaves you and your family on the hook. If the financing falls through, you will lose your deposit and could be sued by the seller. It’s not the happily-ever-after scenario you envisioned when you made your offer. Suppose you really want to put in an offer with no financing conditions. In that case, I can assist you in mitigating your risk, i.e., reviewing the strata documents, listing information, and contacting the lender and insurer about the property before writing the offer, which can help eliminate some of the risks, but nothing can be 100% guaranteed. Let me help you ensure your home buying journey has a happy ending.
If you are looking for a mortgage broker in Vaughan, ON, reach out to me at Mortgage With Vadim. With over ten years of experience in the mortgage and real estate industry, my reputation and long-standing experience allow me to negotiate great rates and access limited-time mortgage specials. As a mortgage professional, I will stay with you for the life of your mortgage with advice and opportunities.
I offer services such as home purchase mortgage, refinance mortgage, debt consolidation, first-time home buyers, and mortgage renewal to clients across Vaughan, Toronto, Richmond Hill, Markham, Newmarket, Mississauga, Milton, Oakville, Burlington, North York, Etobicoke, Kleinburg, Scarborough, East York, North Toronto, GTA, and the surrounding areas.
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