If youâ€™re thinking of buying a home, whether a freehold house or a Toronto condo, there is a huge benefit in getting pre-approved for a mortgage before you begin your search.
Hereâ€™s why you should get pre-approved for a mortgage . . .
1 – CERTAINTY
Who doesn’t enjoy a bit of certainty in their life? Getting pre-approved for a mortgage means you’ll sit down with a professional Mortgage Broker. This person will take everything into account when reviewing your home financing, and you’ll find out exactly how much you can afford, sometimes more and sometimes less than what you expect. Sure, there are convenient online mortgage calculators out there, but they will provide you with only a base monthly payment. Until a mortgage specialist really takes a deeper look, youâ€™re stuck with assumptions instead of complete certainty.
2 – TIMING
In real estate, timing is everything (well, almost everything). We like to say that it’s better to buy and wait rather than wait to buy. Sitting down with a Mortgage Broker to get a clear picture of your home financing may reveal that you are able to buy sooner than you think. Your Mortgage Broker will likely have expertise and helpful advice about saving up for your down payment, or they may have suggestions about methods for borrowing money for your down payment.
3 – AVOID THE LET DOWN
There are only a few things worse in life than not getting what you want. Imagine this, you start your search for a home or a condo in Toronto, you find a property and just fall head-over-heels in love with it OMG!!!, you place an offer and the seller accepts it â€“ they actually accept your offer â€“ and then you find out from the bank that you’re not approved for your mortgage and you can’t afford this dream-come-true home. Now you’ve wasted weeks or even months, and you’ve lost the property. Does that sound like fun? Didn’t think so.
4 – SECURE A RATE
When you make the (very smart) decision to get pre-approved for a mortgage, your bank or Mortgage Broker will guarantee the rate you are given at the time of your pre-approval. This might sound a little lack-lustre, but it can be very helpful. Securing a rate will help you avoid the impact of rising interest rates and unexpectedly expensive monthly payments.
*Getting pre-approved for a mortgage doesnâ€™t lock you in with that particular Mortgage Broker or Bank. You are still able to shop around, right up to 3 weeks before you close on your new property.