What Comes First the Mortgage or the House?

Many people get it backwards. They shop for a home, and then make an emotional decision without knowing what they are able to afford. And then are surprised and disappointed to find out that they cannot get the financing. Thankfully, mortgage brokers do the homework for the applicant to see whether they have the ability to repay the loan while in the lifestyle they are accustomed to.

Something’s to consider about your lifestyle:

• Are you single or a family of six? Costs for food and clothing alone are very different. 
• Do you take annual vacations? 
• How often do you like to eat out? 
• Are you involved in costly sporting activities?
• Would you be willing to sacrifice these things for a bigger or nicer home?

Also take into consideration the following:

• Do you have car payments? 
• Do you have to repay student loans?
• How much do you owe on your credit cards? 
• Do you have bad debts? 

Falling in love with a home without considering the REAL impact on your lifestyle is a recipe for unhappiness….either in re-adjusting to a “lesser” home or disappointment over the lack of vacations or entertainment.

Our advice is to focus on your financing. Find out what you can afford from a lender’s perspective, but then, spend some time considering the cash flow realities of your choice.

Additionally, we can advise you on ways to properly represent and transfer your assets, how to explain and document your income, as well as, assist you to get your optimum credit score. This process will help smooth out some of the bumps during the mortgage process, giving you the best change to the best mortgage rates available. All your prep-work will pay off in the end.

The choice is clear get the mortgage before the house!