Spring is typically when more buyers and sellers start paying closer attention to the Halifax real estate market. Activity tends to increase compared to the winter months, and many people begin preparing for a purchase or sale.
Rob Lough, broker/owner of Century 21 Optimum Realty, recently shared his thoughts on what he’s seeing in the Halifax market this spring. If you’re curious about inventory and pricing trends, you can read his update here:
Rob Lough's Halifax Spring Market Update
From a mortgage perspective, the focus should be on preparation. Having your financing organized before you start looking at homes can make the entire process smoother and help avoid unnecessary stress once you have an accepted offer.
Get Properly Pre-Approved Early
There is a big difference between a quick online estimate and a proper mortgage pre-approval.
A real pre-approval means someone has reviewed your income, credit, and documents and given you a realistic idea of what you may qualify for. You may also request a rate hold to protect you from rate increases over the next 90-120 days.
One advantage of a strong pre-approval is speed. Once you have an accepted offer, much of the work is already done. Most of the documents lenders will request should already be on file, which helps eliminate the last-minute stress of tracking down statements, tax documents, or waiting for employers to send information while you are under a financing deadline.
Stay in Touch if Your Situation Changes
If you were pre-approved a few months ago, it is a good idea to check in with your mortgage broker before writing offers.
Small financial changes can affect your qualifying numbers. Examples include:
• Taking on a new vehicle loan or lease
• Increasing credit card balances
• Starting a new job or changing income structure
• Taking on new monthly debt payments
Other changes can improve qualifying as well, such as paying off loans, lowering credit card balances, or increases in guaranteed income.
Keeping your broker updated helps make sure the numbers you are working with are still accurate before submitting an offer.
Focus on Monthly Cost, Not Just Purchase Price
A pre-approval will usually show the maximum purchase price you may qualify for. That does not mean you need to shop at the top of that range.
A better approach is to determine what monthly payment comfortably fits within your budget.
Your total monthly housing cost may include:
• Mortgage payment at current interest rates
• Property taxes
• Heating costs
• Home insurance
• Condo fees, if applicable
Once you understand what payment level works for your budget, you can work backward to find a purchase price that fits comfortably instead of automatically aiming for the maximum approval amount.
Down Payment Options
In addition to personal savings, buyers may have access to several other down payment options depending on their situation.
Borrowed down payment programs
Programs such as the Nova Scotia Down Payment Assistance Program, certain credit union products, or borrowing from an existing line of credit may be possible if income can support the additional payments. There are differences in how lenders treat borrowed down payments, so if that’s your plan it’s best to mention it early so the right programs can be considered.
2% down payment programs
Some local credit unions participate in programs that allow as little as 2% down. These programs have their own qualifying guidelines, so it is important to review the details carefully before relying on them.
Gifted down payments
Immediate family members can gift funds toward a down payment, which is very common for first-time home buyers.
Understanding Financing Timelines
One thing that surprises many buyers is that lenders typically do not fully review an application until there is an accepted offer on a property.
Even if you are pre-approved, the file usually goes through full underwriting once a purchase agreement is in place.
After an accepted offer, timelines often look something like this:
• 1–3 days for an initial conditional approval
• 2 or more days for document review and income verification
• If an appraisal is required, 3+ days to schedule the inspection and deliver the report to the lender
This is why having your documents organized before writing an offer can make a big difference. When everything is ready to go, the financing condition period tends to move much more smoothly.
With more listings typically coming online in the spring, having your financing organized early can make it much easier to move quickly when the right property shows up.
Call or text (902) 402-9779, or visit
www.gregmatthews.tmgbroker.com/apply.aspx to fill out a five-minute pre-approval form.