The process of buying a property without equity certainly takes longer. First, you have to find the house you want and then find the bank that has the financing solution that suits your needs. However, the real estate market is volatile. Quality homes attract a lot of interest, sell quickly and sellers may not be willing to wait as long as it takes for you to get the bank's approval to go ahead with the purchase. So, in this scenario, a good strategy before you start looking for property is to get a preliminary analysis of the loan application, i.e. a pre-approval for the mortgage.
Nowadays, many people start the journey of buying a house in the opposite order: first they search for properties and visit houses, and only then do they consult the bank to check if they are financially viable. WRONG!
Imagine the following situation: You find a house you love, go to the bank and discover that you can't afford it. How would you react?
You'd probably feel disappointed and frustrated at having wasted time and energy on something you couldn't afford.
On the other hand, if you start the process in the right way, analyzing your financial viability first, you'll have several advantages:
- Time saving: You'll only visit houses that you know you can afford.
- Competitiveness: You'll have an advantage over other people who are also visiting, but aren't as far along in the banking process.
- Confidence: You'll feel more confident and prepared to negotiate, knowing exactly what your financial limit is.
So, you're looking for a house to buy?
Have you already started your process: did you start by looking at houses or did you start by consulting your bank?
UrbiSeg Real Estate