"One problem can come
in when you tell someone
the maximum amount
that can be approved
or the maximum
amount that they could
technically afford — I
think it's the wrong message
to send to people," says
Beckman.
"In the financial industry, we
have standards and we can tell
people, 'Yes, we can approve
this,' but really it's all about
their lifestyle and how much
of their monthly income they
want to put into their house.
"We also try to zone in on what
type of property you are looking
to buy and help people know that
pre-approval is still dependent on
the property itself."
When it's time to make the offer to purchase,
Beckman cautions that it's a good idea to
make it subject to financial approval to make
sure there are no surprises.
"If you just put in an unconditional offer, then you've
bought this house no matter what," she says.
"If you're pre-approved for $500,000 and the property
value isn't quite there or there's something really unique
about it that would make it difficult to resell — that can
sometimes change the picture."
If you're buying a newly constructed home, you
can likely assume there will not be major
maintenance issues in the short term, but
with an older home there might be issues
that change the road just ahead.
"It's important to ask what work has
been done or if a new water heater
has a warranty, when shingles were
replaced — just to help better
prepare and to say,
'Yes, based on the value of everything,
this property would be a good fit.' "
Beckman says buyers should also understand
all the one-time fees involved in buying a
home.
"We like to talk about what your lawyer appointment
is going to look like and outline all those fees when
purchasing a home so there are no surprises."
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