Date Posted: December 5, 2017
On this week’s episode, Mortgage Brokers Ottawa’s Barb Kramer joins Paul Rushforth and host Steve Gregory to discuss the importance of a pre-approvals and financing waivers with the new rules coming into place and the value of bridge financing.
Barb notes that their team has seen an increase in multiple offers on applications and offers over asking price. She states that clients need to know that in any scenario which requires an appraisal if the appraised value of the home comes in lower than your offer, you make up the difference in down payment. The team once again discusses the importance of the financing clause in all scenarios. Understanding what happens in the 5 day financing clause, especially if an appraisal is required, can be beneficial to both clients and real estate agents to help with the process.
Barb and Paul get into some details about bridge financing, which does require the home to be sold in order to be approved, and is especially important of a client needs to sell their home for down payment on their new home. Bridge financing can allow clients to close on their new home sooner to allow a smoother move in process and time to paint and clean their new home.
If you are listing your home in December Paul recommends minimizing your decorations, decluttering to show off square footage and try and display your home for all buyers. Paul also touches on his team seeing more financing extensions and will potentially see more with the new rules coming into place in January. The team strongly recommends to all agents and brokers that it is more important than ever to get their clients pre-approved on the new rules. The team recommends always discussing potential offers with your Mortgage Broker especially if you are finding yourself in a multiple offer or over-asking price scenario.