Millennials

The Benefits to Obtaining Financing before you enter the Real Estate Buying Market, Milliennials Talk Money

Sunday Jul 29th, 2018

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Before you enter the real estate market, figuring out how you will finance your purchase is an important subject. In these times  there are plenty of ways to do it. That said, it can be very stressful waiting for approval and should something unexpected happen resulting in not being approved, one’s hopes of buying in this real estate market can be extinguished rather quick.

 

The benefits of obtaining financing prior to submitting an offer on any real estate are well understood. Doing so will provide you the exact budget specifications as to what you can afford, it’s an exercise that does not come with any obligation, and it gives you the buying power to seem professional, ready, and serious to both sellers and real estate agents. To all of these points, getting financing before you buy is the easiest way to get the peace of mind you need to know that financially speaking, everything’s in place and ready for when you need to submit an offer.

 

Budgets for buying real estate change. As we add debt, change jobs, move around money across our accounts, and/or take on a co-signer, these different things can positively and negatively impact the financing you’ll qualify for. If you’re serious about buying real estate in Toronto, Peterborough, or other markets across the province, that’s when to secure financing. If you intend to make a real estate purchase a year or more down the line, seeking pre-approval on a mortgage or obtaining a loan is not necessarily needed nor is it necessarily appropriate.

 

There may be limitations or conditions on aspects of your financing. It’s important to know what those are, especially if they could affect the rate. Now, there are a multitude of different ways to finance a real estate purchase. There’s the traditional pre-approved mortgage, in addition to whatever you might be able to gather together in savings. For those who might have any high-value assets that could sell for a significant amount, that’s something to put towards a real estate purchase. There’s private loans and a range of different mortgage-related options which may or may not have the best rates.

 

Prior to getting financing, ensure you save for the biggest possible down payment, debt is paid down as best as you can, that your credit’s in good standing, and that all your paperwork is in order.

 

Then, regarding financing, some areas you may wish to investigate include buying as an owner occupant, obtaining a home equity line of credit, using proceeds from a cash-out refinance from another property, assuming the seller’s mortgage, looking for subject-to financing, finding a lease with an option to buy property, finding an investment partner, or considering alternate private funding of some variety.

 

Buying real estate is a wonderful investment. Toronto and Peterborough are two of Canada’s strongest real estate investment opportunities. Be it to have a family or as a simple financial investment, buying real estate is something we all can work towards. Thanks to the dozens of different possibilities in financing a real estate buy, it’s accomplishable for almost any Canadian.

For more information on home financing, real estate, and how to add value to your property, visit back often!


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