House hunting is the first step when buying a home. WRONG!
When you are a serious homebuyer, you must be intentional and competitive. I know, I know, nobody wants to be in competition. We’ll get to that later.
First, what is a mortgage pre-approval? A mortgage pre-approval is a verification from a mortgage lender that you qualify to buy a property based on your credit history, credit scores and other factors. The “pre” in front of the word “approval” is short for preliminary, meaning the lender still has to validate all of your information to issue a final approval before you close. Think of a mortgage pre-approval as an initial “green light” for a home loan.
Why is there power in a pre-approval?
First, it saves you time from scouting out homes outside your price range. You refine your search to look for homes that make sense financially. It allows you to know your borrowing capacity and helps you determine what your monthly mortgage payments will be, based on the downpayment you plan on making.
A pre-approval also communicates that you are a serious and credible buyer – with a mortgage pre-approval, you are announcing to stakeholders in the transaction “I am a serious buyer and that my financial situation is sound and would like to make an offer on your property.”
It gives you more negotiating power. Remember I mentioned competition? In case of multiple offers on a same property, it will give you an advantage over other buyers who have not been pre-approved.
You don’t want to fall in love with a home that you cannot afford, right? What if you found a place that is perfect for you, but someone ends up getting it because he has a pre-approval and you have not even considered getting one?
Obtaining a pre-approval is free and does not commit you to anything. Why would you not get one?
Please talk to your lender or mortgage brokers and get pre-approved. The next step, CALL ME.
Scarlet Cirio, Your Winnipeg REALTOR®
431.335.4285 | info@scarletcirio.com
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