Buying a Bahamas Home? Don't Horse Around!

So you're ready to buy a Bahamas home? The most important advice we can offer is to "put the horse before the cart."

While many buyers are aware that a mortgage pre-approval letter increases their buying confidence and power, most may not understand exactly why pre-approval is so important.

Why should you jump through the application hoops before even beginning your Bahamas home search?

First, you'll know exactly how much loan you can afford, making your initial home search much easier.

Why waste your time looking at homes either out of your reach or well below your financial grasp? Save yourself the disappointment.

Second, pre-approved buyers stand on solid negotiating ground with sellers. Sellers working with well-qualified buyers are more likely to accept the offer if there is no potential “subject to finance” clause and less likely to stall on terms and conditions.

Notice we're talking about "pre-approval," and not "pre-qualification." What's the difference?

Pre-qualification is easy - you provide basic information to a lender, and soon you have an answer.

Pre-approval requires strict verification of documentation relating to your employment, assets, liabilities, sources of income, etc. It takes more time, but is more accurate and carries more weight.

Understand that pre-approval is not binding, and is still subject to a satisfactory appraisal on the prospective purchase.

If your financial situation changes, or the deadline passes, a recalculation will be necessary; but a little legwork now will pay off handsomely as you approach the finish line on your Bahamas home contract.