Top Real Estate Agent question….in 6 minutes

July 13, 2011

The Last thing a Realtor wants to see is…. “put an offer in on a house, to find out that the deal fell apart due to financing” … has this happened to you?

This seems to be the number 1 issue with my Realtor friends in the London and surrounding area…. if this hasn’t happened to you, then prepare ahead, because I see this more and more each week !…… here’s a 6 minute video that can help you.

Here’s the Best question you can ask to prepare yourself and see just how concrete your clients “Pre-Approval” is ……
Realtor: “So I assume you are Pre-approved before we go house shopping? ”

Clients: ” Yes, ______ Bank said I could look for $350,000

Realtor: “Can I ask.. I always wonder what is best… are you pre approved for a Fixed or a variable rate Mortgage?”

If your client does not know the difference, then…DING DING DING , raise a RED flag!!…. Here’s why…

5 Year Fixed rate for qualifying is 3.89{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8} (ish)

5 Year Variable rate for qualifying is 5.39{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8} …. New Rule from Canadian Gov March 18 2011, must use BofC current MQR )

So… What does this mean?… here’s an example….

If a client makes $60,000 salary…. a 5 year fixed buys him a $265,000 house, but a 5 year Variable, he can only buy for $235,000

Now honestly ask yourself…. if your client doesn’t know this before you start showing him/her houses, well … what is your time worth ?