After deciding that buying a Calgary property is the right decision for you (see Buying versus Renting) need to determine the next step and that is knowing how much you can afford for a property in Calgary.
Speaking with a Calgary Mortgage Professional or the own at the onset will alleviate many problems that you can encounter and set you on the right track to a successful purchase. One of the biggest things to remember is that you should only buy what you can realistically afford. Often times you will be qualified for much higher than you thought and if your monthly payment is going to be high relative to how you like to live than you should consider buying at a price range less than the maximum mortgage you qualify for. Some breathing room in monthly payments is never a bad thing!
Also remember that you will be required to put a deposit of some value, a down payment and there are other closing costs that will also be required. Check out some of the closing costs that you can expect to pay.
Pre-Qualification or Pre-Approval
Pre-qualification is finding what you can afford based on your current level of income, savings and expenses. This is not an approval from a lender for a loan but merely gives you a good idea of what you can afford.
Mortgage Pre-Approval versus a Mortgage Pre Qualification
Getting a mortgage pre-approval is different than pre-qualification in that you will need to provide documentation to your mortgage professional as well as having a credit check done. A pre-approval will help to prevent you from having the disappointment of finding the perfect house only to find out that the lender will not approve you.
Finding out your financial position before looking at homes is the very first step of the process. If you would like a list of mortgage professionals that clients have recommended for outstanding service and help click on the link for the professional list.
Once you have determined what you can afford it is time to put together your team to assist you with you purchase. See Your Calgary Real Estate Team – Finding the right mix to assist you.