Mike Lightbourn's Bahama Advice Column
The Bank May Change It's Mind If...
2017-07-07 11:28:39 by Mike Lightbourn
You've been pre-approved by the bank for Bahamas real estate for a mortgage when the unthinkable happens.
The bank wonít formalise the approval.
Wham! Youíre gutted. Youíve found a great Bahamas home and put in an offer. How could this happen?
The question in most cases should really be: What have you done since the bank gave pre-approval?
Once youíve decided to buy a home or property in the Bahamas, the first thing you need to do is get pre-approved by a lending institution for a mortgage.
This will tell you how much the institution is willing to lend you, if you in fact qualify for a mortgage.
It also tells Bahamas Real Estate Association brokers and sellers youíre serious and not wasting their time.
However, preapproval comes with commitments. The bank is not obligated to go through with the loan.
The bank or lending institution will take a hard look at what you earn and what you owe and any assets you may have to determine if youíre worth the risk.
The decision will be made on the information you provided at a given time.
If you go further in debt after this point, you may not be considered a reasonable risk any longer. So before you consider buying a new car or furniture, for instance, under an in house financing or payroll deduction arrangement, check with the bank.
Changing jobs can also hurt your standing, depending on the switch.
If you have a secure job with a financially sound company and you plan to join a new start-up, for instance, you will more than likely be considered a high risk. The bank wonít want to share the risk.
Quitting a secure job to start your own business or leaving a secure salaried job for a commission based job will also raise red flags.
If you're serious about buying a Bahamas home, tonít take on any new commitments without first checking with your loan officer.
Questions? Email me at firstname.lastname@example.org.
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(Mike Lightbourn is president of Coldwell Banker Lightbourn Realty)
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