Financing Your Loft

When you are purchasing a loft/condo, it is your responsibility to locate someone who will give you a home loan. The first step is getting "Prequalified." Prequalified is a quick process where a loan officer will do a debt to income calculation. In addition, they will take any amount of money you have to 'put down' into consideration. With this information, they will give you a limit to how much you will be able to borrow. They will also explain what your monthly payments will look like at the price you are wanting to buy. Usually, this is the ceiling of the final price point your loft must cost.

In this market, we can shop about $50,000 to $100,000 above that price point depending on the final cost of your loft. Lofts under $650,000 may reflect $50,000 to $100,000. It depends on many variables including time on the market, location, etc. On properties higher than $650,000, you might find more negotiation. Of course, we can locate as many lofts that you like and put in as many aggressive offers as you wish. It's always best to have more than one loft you want. With the 'multiple offers' strategy, you may get a better deal on select lofts.

After we have an accepted offer on a loft, the next step is getting "Pre-Approved" for the purchase price of your loft. This is an in-depth inquiry into your financial situation by your Mortgage Lender. Mortgage Lenders check your banking accounts, call your work to confirm employment, etc. They will look at your monthly credit card bills and other monthly payments to see that you are paying everything on time.

Some developments have preferred lenders. If you do choose one of these developments then the requirements that this particular loft community demands of you may require getting pre-qualified by their in-house lender. Any other pre-qualification does not apply.

If you prefer to check with your bank directly, you can prequalify with a local banker. Ask your banker how much your maximum & minimum payments will be on the price range you can afford. Shop your loan when you shop for your home.

You might want to choose a "Loan Broker." A loan broker works with all the different banks out there.

Contact me if you have any questions.