MONEy
MATTERS
Build on a solid
financial foundation
By Wendy King
>> Buying a home is likely to be the biggest investment you
will ever make. Before you start shopping, you'll need to get
your financial house in order.
"The first step is to meet with the lender before you go to look
at any homes, so you'll know what price range of home you can
comfortably afford," says Aaron denysuik, manager of Consum-
er Lending at steinbach Credit union.
your lender can provide expert advice and guide you through
the entire process, which should include securing a pre-ap-
proved mortgage.
denysuik says their goal is to make financing simple, easy to
understand and as stress-free as possible.
you will need to provide verification of income from employ-
ment, investments and other sources. The lender will also verify
liabilities such as credit card balances, car loans and student
debts — any monthly obligations.
F I n A n c e S
"you can expect that you would be discussing income; the
source of the down payment; determining your net worth,
which is assets minus liabilities, and credit bureau listing, all
to determine your credit-worthiness for that pre-approval."
once you're pre-approved for a mortgage, your lender will
provide a letter outlining the maximum qualifying amount,
with an interest rate guarantee for a set period of time —
up to 90-120 days, depending on your financial institution's
policy.
"That letter is our commitment to the client, subject to cer-
tain conditions, to lend them money," denysuik says. "The
goal is for them to walk away with the confidence to go and
speak to their realtor."
once you find the home you want, denysuik says that even
with pre-approval, you should make financing a condition
of any offer you put on a home.
34 Parade of Homes FALL 2016
Cont'd on page 36
