Congratulations on making the decision to become a homeowner. Before you start shopping around the market it is important to get pre-approved for a mortgage so you do not limit your possibilities. As your Burlington mortgage broker, our team has made a list of the top 5 reasons why you should get pre-approved.
- Know your affordability:
- Aware of other costs
- Saves you time
- More Credibility
- Negotiate better deals
Pre-approval informs you on exactly how much you can borrow from a lender. Being aware of your affordability can help decide if you are financially ready to take on the commitment of homeownership. Knowing how much the financial institution is willing to lend you means you will have a price range to shop in. This can save you time by not looking at houses outside of your budget.
During the pre-approval process, your Burlington mortgage broker can educate you on the different costs associated with becoming a home buyer. This prevents you from being blind-sided by the additional fees once you start your loan application. Your broker will make sure you are informed, since most first-time buyers do not know about closing costs, title costs, insurance, and down payments.
Getting pre-approved can save you time whether you are looking for a Burlington second mortgage, or your first one. Pre-approval requires all your financial documentation, which means by the time you start the mortgage process your information will be organised and your credit score checked.
When shopping the market for a new home, sellers will give you more credibility if they know you are pre-approved. This shows them that you are financially ready to buy a home. In addition, if you are in a bidding war with another family, the seller will most likely choose you over someone who has not been pre-approved.
Once the sellers know you are credible and can take on the responsibility of homeownership, they will be more likely to negotiate with you for better rates. Pre-approval lets sellers know that you are serious about buying a home and therefore you have more of an advantage to state what you are willing to offer.
If you are in the market for a Burlington mortgage then our team at Loewen Group Mortgages strongly recommends you get pre-approved today! To get started, you can contact us at 289-337-4029 or James@loewengroup.ca.