Buying a Home in Alberta? Start With the Financing, Not the Listings

There’s nothing worse than scrolling through Realtor.ca, finding the perfect house, sending it to your Realtor, booking a showing, falling in love with it, writing an offer…

…and then finding out the financing may be a problem.

It happens. But sometimes, it can be avoided.

If you’re thinking about buying a home in Alberta, one of the best places to start isn’t with the listings.

It’s with the financing.

Whether you’re a first-time homebuyer, an investor, you already own multiple properties, or you’ve bought and sold homes ten times before, getting your financing organized early can make the entire process a lot less stressful.

A pre-approval is about more than your maximum purchase price

Most people think of a mortgage pre-approval as finding out how much they can afford.

That’s certainly part of it. But it also gives us an opportunity to actually look at your file before there’s an accepted offer and a financing-condition deadline hanging over everyone’s head.

We can look at your income, debts, credit, down payment and the documents that will eventually be needed. If there’s something that needs clarification or a little work before your file goes to an underwriter, I would much rather find that out now.

Then you can shop with a better understanding of your financing position, your Realtor can help you search within a realistic range, and we aren’t trying to solve avoidable problems with ten days left on a financing condition.

That’s better for you. It’s better for your Realtor. It’s better for me. And frankly, it’s better for the lender reviewing the file.

Nobody needs more closing-day stress.

A pre-approval may also give you some protection if rates rise

Depending on the lender and mortgage product, a pre-approval may allow us to hold a rate while you shop for a home. Rate-hold periods vary by lender and product, but 120 days is common.

That can give you some breathing room in a changing rate environment.

If rates rise during the applicable rate-hold period, you may have the benefit of the rate that was held, subject to the lender’s terms and final approval.

If rates fall while you’re shopping, we can review what options may then be available rather than simply assuming the original rate is the one you have to take.

A rate hold isn’t a guarantee that the mortgage itself will ultimately be approved — the property and your full application still have to meet the lender’s requirements — but it can be a useful part of preparing before you shop.

Not ready for a pre-approval yet? That doesn’t mean it’s too early to talk.

Maybe buying is six months away. Maybe it’s a year away.

Maybe you’re worried about your credit and would rather get things in order before you apply.

Good.

That gives us time.

We can look at where things stand now and talk about what could make your application stronger when you are ready.

Sometimes the best mortgage conversation happens long before there’s a mortgage application.

It might mean making sure payments continue to be made on time, reducing balances, building your down payment or simply understanding how a future financial decision could affect your borrowing ability.

And please — before financing a new vehicle, taking on a large debt or making another significant credit change while preparing to buy a home, talk to your mortgage professional.

The new truck might look great in the driveway.

It’s considerably less exciting if the payment changes what you can qualify for on the house attached to that driveway.

Been told no? Find out what the “no” actually means.

This is another conversation I have fairly often.

Someone went to their bank and was told they couldn’t qualify.

A no matters. We shouldn’t pretend it doesn’t.

But a no from one lender doesn't necessarily mean every lender will reach the same decision.

Different lenders have different products, policies, risk tolerances and ways of looking at certain types of income, properties and borrower situations. Sometimes another option exists. Sometimes the answer really is not yet, and the useful thing we can do is figure out what needs to change.

Either way, I’d rather understand why.

That probably comes from my previous career more than I realized.

“Okay. We have a problem. Now let’s find a solution.”

Before mortgages, I spent years working in health and safety in pipeline construction.

Policies and procedures mattered. You didn’t get to ignore them because they were inconvenient. They existed to protect people, protect the project and protect the industry.

But when something stopped a project, standing around complaining that the rules wouldn't let us do what we originally planned didn't get the job done.

The question became:

Okay. We have a problem. What are we allowed to do instead?

I’ve realized I bring a lot of that thinking into mortgages.

Lending policies exist for a reason. They protect lenders, borrowers and the stability of our financial system. My job isn't to find a way around them.

My job is to understand them.

If Plan A doesn't fit within a lender's policy, is there a legitimate Plan B? Is there another lender whose guidelines fit the situation better? Is there something we can change or improve? Or do we need to make a plan now so that buying becomes possible later?

I’m also fortunate to work with an experienced mortgage team. That matters when a file isn't straightforward because sometimes another set of experienced eyes sees an option or asks a question that changes how we approach the file.

There won't always be a workaround.

But I’m willing to look.

Start before you find the house

Buying a home is exciting. Looking at houses is the fun part.

Mortgage documents? Usually not the part anyone has been dreaming about.

But doing the less exciting work first can make the exciting part a whole lot better.

So if buying a home in Alberta is somewhere on your horizon, you don't have to wait until you've found the perfect listing to start the conversation.

We can look at where you are now, where you want to go and what needs to happen between the two.

Then go scroll Realtor.ca.

At least you'll have a better idea of what you're looking for.