During an open house I had someone ask me, “If I am just starting my property search, why should I spend the time to get pre-approved by a lender? Shouldn’t I do that after I find a property I am interested in?”

It can be extremely frustrating for a buyer to find out, only after spending several months looking for a property, that he cannot afford the property he fell in love with. It is important to know how much you can afford at the beginning of the process so you do not waste a lot of time looking at properties that are not in your price range.

It is difficult to know what you can afford without talking to a lender as they will look at all of your financial obligations, talk to you about your lifestyle and find out more about your long-term goals. They are also able to discuss different mortgage products with you depending the amount of down payment you have available, the length of time you plan to stay in the property and whether it is a primary, secondary or investment property.

It is best to be armed with knowledge of your true budget at the beginning of your property search rather than going into the process blindly!