Bo Kauffmann, top producing REALTOR with Re/Max Performance Realty, sees examples of this almost weekly. Buyers come to him 'pre-approved', only to find that, once their offer on a house or condo is accepted, they have been dealing with the wrong lender all along.
As an example, Bo cites the case of a young man, a First-Time-Buyer looking for his first home. He had been pre-approved for a $120,000 mortgage by his parents bank. "His parents were 'gold-level members' at this bank, so I would think that they were going to treat him well and with respect", Bo states. Together they looked at about a half-dozen homes until the client found what he liked......a 675 sq ft bungalow in St Vital.
"I told my client to double-check with his bank, because I was aware that they had certain limitations in their system". A phone call by the client to his bank confirmed Bo's fears.....this particular bank did NOT lend money for houses under 750 sq ft in size.
"$120,000 does not buy much in St Vital. When they pre-approved him at that level, what kind of house did they think he would get?" So this particular house sold to someone else, and Bo and his buyer continued looking.....after he was pre-approved with another lender.
In another recent case, the same problem arose, and the purchase of the clients house almost fell apart. "That can be devastating to the buyer. We have to remember that by the time a buyer puts an offer on a house, they really WANT that house. To have it sold out from under them to someone better prepared is not a fun experience"
So what is Bo's advice? "Call me BEFORE you go to a lender!" Not all lenders are created equal, and not all cater to the same needs. So after a short interview, Bo is in a better position to recommend the lender who is right for you, and for your purchase. Plus, as a top-producing REALTOR, Bo does a lot of business with these lenders, and a referral to them is treated with greater care and professionalism.
Whether you are a first-time buyer, or looking to buy a larger home or condo, call Bo....not only to help you find the home youre looking for, but to get you pre-approved fast, by the right lender.
For more info, check out Bo's website at http://www.WinnipegHomeFinder.com
