Understanding the Sales Process

So you've done your homework to see how much you can afford to pay for a new home in the Bahamas.

You've listed all your monthly expenses, excluding rent, and then subtracted the total from your income to come up with a figure.

Hang on. Not so fast.

What you think you can afford and what the bank is willing to lend you may be a different story, especially if you have poor credit, you're in an uncertain job market or you rely on tips or commissions to flesh out your take home pay.

That's why it's important to get preapproved for a loan before house hunting. Save yourself the heartache and the embarrassment of making an offer on Bahamas real estate you can't afford.

Otherwise, you may well be wasting your time, the seller's time and the BREA agent who will be involved in the process.

Remember, too, that even if you have been preapproved for a mortgage, this can fall through if, for instance, you take out a loan for a car after you've been preapproved for a mortgage.

If you pull out of the sale after you've signed a contract you might lose the deposit you made when you went under contract. The exception is if there is a “subject to financing” clause.

However, there is no reason for a seller to agree to such a clause, especially as it will take his home off the market when other qualified buyers could be looking at it.

Having said the above, I maintain that real estate is still the best investment you will ever make, provided you “buy well.” When you find the right deal- BUY IT!

(Mike Lightbourn is president of Coldwell banker Lightbourn Realty)

* Your leading Bahamas real estate source