A Realtor friend recently told me about a client who had been pre-approved for a mortgage of $260,000.
The client wanted a second opinion.
I have been working with an excellent mortgage professional who runs his business much like I run mine. He values relationships, takes the time to understand each client’s situation and genuinely wants to help people make informed decisions.
I gave my Realtor friend his contact information.
After reviewing the buyer’s financial situation, the mortgage professional was able to pre-approve her for $315,000.
That is a difference of $55,000.
This does not mean every buyer who gets a second opinion will qualify for more. It also does not mean someone should automatically spend the maximum amount they are approved for.
What it does show is that who you work with in real estate matters.
Why Can Mortgage Pre-Approvals Be Different?
Different mortgage professionals may have access to different products, programs and lending options. They may also approach a buyer’s financial situation differently based on their experience and the information available to them.
A knowledgeable mortgage professional will take the time to understand a buyer’s complete financial picture, including:
Income and employment
Credit history
Existing debts
Down payment
Monthly expenses
Available mortgage products
The type of property being purchased
Sometimes a second opinion confirms the original pre-approval. Other times, as it did in this situation, it can reveal options the buyer did not previously know were available.
This is why asking questions and seeking a second opinion can sometimes help buyers better understand all of their options.
A Higher Pre-Approval Can Change a Buyer’s Options
In the Sarnia-Lambton real estate market, an additional $55,000 can make a meaningful difference in the homes a buyer is able to consider.
It may provide access to a different neighbourhood, an additional bedroom, a garage, a more updated property or a home that requires fewer immediate repairs.
It can also give a buyer more flexibility when competing for the right property.
However, being approved for more does not necessarily mean a buyer should spend more. A mortgage pre-approval tells you what a lender may be willing to lend. It does not determine what monthly payment will feel comfortable for your lifestyle.
Before choosing a price range, buyers should also consider property taxes, utilities, insurance, maintenance and their other financial goals.
The purpose of getting good advice is not simply to find the highest possible number. It is to understand all of your options so you can make the decision that is right for you.
Real Estate Is a Team Effort
A successful real estate transaction is rarely the work of just one person.
Your Realtor may help you find and evaluate a home, negotiate the offer and guide you through the buying process, but several other professionals also play important roles.
Your Mortgage Professional
Your mortgage professional helps you understand your financing options, determine an appropriate price range and complete the financing process.
Having this conversation before beginning your home search can help you shop with greater confidence and avoid falling in love with a home that does not fit your financing or budget.
Your Realtor
Your Realtor helps you understand the local market, identify suitable properties and recognize the strengths and potential concerns of each home.
Your Realtor should also communicate with your mortgage professional when necessary, particularly when a property has details that may affect financing.
Your Home Inspector
A home inspector evaluates the visible condition of the property and helps you better understand its systems, maintenance requirements and potential concerns.
An inspection can give you valuable information about the home before you move forward with the purchase.
Your Real Estate Lawyer
Your lawyer reviews the legal details of the transaction, completes the transfer of ownership and helps protect your interests as the purchase moves toward closing.
Each professional has a different responsibility, but the best experience happens when everyone communicates and works toward the same goal.
Trusted Professional Relationships Can Make a Difference
Over the years, I have built relationships with mortgage professionals, home inspectors, lawyers and other local service providers.
These relationships do not replace a buyer’s right to choose who they want to work with. Buyers should always feel comfortable asking questions, doing their own research and selecting the professionals who are right for them.
My role is to help make the process easier by connecting clients with trusted options when they need them.
In this situation, one introduction gave a buyer the opportunity to receive a second opinion and learn that she may have had more purchasing options than she originally thought.
That is the value of working with professionals who communicate, collaborate and care about the person behind the transaction.
It Is Okay to Ask for a Second Opinion
Buying a home is one of the largest financial decisions most people will make.
If you do not fully understand your mortgage pre-approval, or you are wondering whether other options may be available, it is okay to ask questions or seek a second opinion.
There is no guarantee the result will change. You may receive the same answer, but you will have more information and greater confidence in your next step.
The same principle applies throughout the real estate process. The advice you receive, the questions you are encouraged to ask and the professionals you have beside you can all influence your experience.
Who you work with matters.
Thinking About Buying a Home in Sarnia-Lambton?
If you are considering buying a home in Sarnia or anywhere in Sarnia-Lambton, you do not have to figure everything out on your own.
I can help you understand the buying process, explore the local market and connect you with trusted professionals who can explain your financing, inspection and legal options.
There is no pressure and no obligation. It can begin with a simple conversation about where you are now and where you would like to go.
Your Friend in Real Estate,
Kelly Sitter, Broker
EXIT Realty Community
Serving Sarnia-Lambton and the surrounding communities
www.kellysitter.com
