- By applying for the pre-approved mortgage, you will know the price range you should focus on when you start looking for your dream home and you will avoid disappointment.
- Your realtor will know exactly the kind of properties you are looking for: this speeding up the process and saving you both time.
- Being pre-approved gives you an edge over other home buyers as it means a quicker sale for the seller. Some sellers prefer to go with buyers whose mortgage is pre-qualified.
- Pre-approval helps you plan your money wisely since you can calculate your down payments. You know what to expect.
- Since your application has been reviewed, you are in the better position to negotiate the price, saving you a lot of stress in the process.
- The biggest benefit of pre-approval is the ability to lock-in your mortgage rate (usually for 120 days), protecting you from increase in interest rate.
During the pre-approval process, besides deciding your down payment, your budget and mortgage amount, you will also explore different mortgage options such as interest rates, terms of interest and the payment options available to you. Based on information you provide to your Mortgage Broker; an application will be prepared for your lender and your credit score will be checked. This is followed by your pre-approval and rate hold.
Now you can start house hunting with knowledge and confidence! A pre-approval locks in your mortgage rate so that there are no surprises later.
Gain the confidence you need to start your home buying process.