“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
“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.
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.
“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.”
“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.” Cont’d on page 126 Parade of Homes Spring 2020 125
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.
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