Why Do I Need a Pre-Approval?
Although it sounds basic, knowing how much you are able to spend before going out tp look at purchasing a home is always a good idea.
Together, we will determine how much you can afford to borrow based on your income, assets, qualifications and credit rating. This saves you and your Real Estate Professional time and frustration and allows you to focus in on the right property more quickly.
I will advise you of what your payments will be for different mortgage amounts, explain the different products available, discuss the down payment and closing costs associated with your purchase, explain what documentation you will need to provide in order to satisfy the lender’s conditions. I will also go over all the different Government programs available to help home ownership become a reality for you.
Once we do this, your application will be processed, then submitted to select lenders and I will secure a “rate hold” for up to 120 days for you. If rates go down within this time frame you will get the new "lower" interest rate. If rates increase, your lower rate will be protected. This is a win-win scenario for you . Should you not purchase within the 120 days, at your request, I will re-submit your file in order to obtain a new rate hold.
- A pre-approval helps you determine what you can afford and what it will cost you to buy a home. This is invaluable as it lets you look for houses within your price range confidently. Then when you find a house you like, you can make a solid offer right away. You will know all your costs including down payment and closing cost after you have been pre-approved.
- The pre-approval process outlines the documentation required to obtain approval once your deal goes "live". These documents should be gathered in place as soon as possible in order to shorten the amount of time you will need to get a final approval on your financing once you have found a home. This could give you an advantage over other offers in a competing situation.
- Many realtors, in fact, will want confirmation that you as a client have been pre-approved before starting to look at homes to avoid disappointment at a later date and give them stronger negotiating power.
With a Pre-Approval in hand you know exactly where you stand before shopping for a home.
Save Time by Looking at the Right Homes
If your real estate agent is sending you automatic e-mail listings of available homes, you can ask her to change the parameters to more tightly encompass the selection of homes that you are qualified to buy. If you're not receiving e-mails from your agent, ask her to set you up on her Personal Client Service list. This way, you'll save time by checking out homes you can actually afford to buy instead of falling in love with something that is not with-in your grasp.
Spend More Time Examining the Right Homes
By decreasing the inventory of homes to those that fit your parameters, you can allot more time to thinking about all the little nuances each home has to offer.
Gain Confidence & Avoid Disillusionment
Know that when you find that perfect home, you will be able to make a solid offer on it as you will have minimized any anxiety in regards to qualifying and have removed any last-minute loan surprises that could have your mortgage loan turned down.
Increase Bargaining & Negotiating Power
Sellers are more likely to accept an offer when the purchase has been Pre-Approved. In a multi-offer situation a seller is unlikely to accept the offer of someone who has not been Pre-Approved.
Enjoy a Faster Closing Period
Because the lender has already done a preliminary approval with you, once you have found your new home I can accelerate to whole loan approval process.
Please note that even with a pre-approval, it is strongly recommend that you insert a “subject to financing” clause into your offer to purchase, as the lender will need to review and approve the final application and the home being purchased once an accepted offer has been submitted.
For advice on how much you qualify for and to get a 120 pre-approval, call me or email me anytime – Laurie Anne Faulkner 250-588-2288
*Subject to approved credit, income verification and meeting lending credit granting criteria. Applies to residential mortgages only and some conditions may apply. O.A.C., E.O.E All content is subject to change without notice.