Don't Start Shopping Until You Do This
Tuesday Dec 04th, 2018Share
Before booking a showing, before even starting your search for the perfect property, there is one absolutely critical thing you need to do first: Get your pre-approval. Homes sell quickly. Having your finances in order before shopping puts you in a stronger position than the competition and greatly reduces the stress involved in making the deal happen.
Your mortgage pre-approval will tell you what you can afford and influence what you shop for. It will also ensure you're ready to take action when the right property comes along.
When you meet with your lender to arrange your pre-approval, they will evaluate your existing debt-load, income, credit worthiness and other factors to determine how much of a mortgage you qualify for and at what rate. Your lender will tell you what interest rate theyare able to offer and what your monthly payments will be.
A common misconception is that a mortgage pre-approval gives you carte blance to buy any property within the given price range but this is not true. Once it comes time to make the offer, the lender has to be satisfied with the price and condition of the subject property.