Why Get a Mortgage Pre-Approval

What with the new increases in mortgage rates, buyers need to carefully prepare for a mortgage application. The very first step after deciding you want to buy a home should be a mortgage pre-approval.

Mortgage pre-approvals

No matter how much you think you can afford, you need to seek out professional services to analyze your financial position in order to get confirmation from a financial institution on the exact amount that you can get approved for a mortgage.

Mortgage pre-approvals will help you focus

With your mortgage pre-approval in hand, you now know what you can afford so you don’t waste any time (yours or the seller’s time) looking at houses outside of your price range.

You are not locked into a mortgage if you can’t find anything suitable but you are locked into the rate mentioned in the pre-approval letter.

By being locked into a rate, you are protected if interest rates rise during the process of looking for your next home and you are free to seek a new pre-approval if rates drop.

Mortgage pre-approvals give you bargaining power

When you do find the home that you are looking for, you may have increased bargaining power during negotiation or at the very least instill confidence in the seller that you have been pre-approved for the price of the property and any conditions in the offer placed on financing should be waived with ease.

You will also be able to act swiftly without hesitation or doubt upon finding the home that suits you, preventing other buyers from scooping it up while you are trying to make an appointment with your mortgage broker to figure out if you can afford it.

It is important to know your limits and buying a home is no exception. Looking for homes with out a mortgage pre-approval can be frustrating, time consuming and might not produce any results.

Mortgage pre-approvals make things easier

A mortgage pre-approval will make the house hunting experience much more focused and pleasurable.

If you have already been pre-approved for your mortgage and are ready to begin house hunting, visit ComFree.com today.

Rosy Saadeh

About Rosy Saadeh

Rosy Saadeh is a Social Media Manager and Marketer and spends her time scouring the net trying to make new friends, help clients and post interesting stories about real estate and the like in Canada. Connect with her on Twitter, Facebook, Google+, and Pinterest.

5 comments

  1. Jennifer says:

    Hi Rosy!
    I have a similar role to yours for our real estate group. I found your post and decided it would be a good one to share on our blog. I have given you full credit and provided a link to this original posting. Please let me know if you do not approve of this re-blog. I will (of course) immediately take it down. Otherwise, I think our followers and clients can benefit from your advice!
    Have a great day!
    BTW… Here is the address of the blog, if you want to check it out: http://activerain.com/blogsview/4198251/-why-get-a-mortgage-pre-approval-yes-there-are-very-valid-reasons-?share_opt=1

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  4. zahi says:

    Hi There. Please Iam looking for buy awarehouse space 1200-2500ft.
    my address 135 Hillcrest Ave- Mississaug.
    The goal: To produce milk. so i need it industrial warehouse space

  5. I am cuurently in a consumer proposal which will end August 15, 2010. At that point am I ready to start looking for a bachelor/studio condo in Montreal. I am ready to spend up to, but not more than $125,000. This amount will allow me to sell my home, have $50,000 down payment, have $5,000 for realty fees and land transfer tax and $10,000 just for moving expenses and necessities when I arrive. Obviously, I have researched and willl be listing my current condo for $65,000 which is virtually paid for.

    I would like to know how selling and moving in to a mortgage works. I have to sell on the condition that my home will be sold before I take on a another mortgage. How does this all work? If put a deposit down, will I lose it if my home is not sold yet?

    I am looking for a new studio as I mentioned, in the greater Montreal area.

    Please give me as much information as possible. Thank you

    Paul Leclercq
    rocketman@cogeco.ca
    905-526-9708

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