Should You Get Mortgage Pre Approved?

After months of late night trolling of the MLS and weekends spent visiting open houses and numerous slow drive-bys, you have decided that you want to buy a house or a condo. Mortgage rates are super affordable and, quite frankly, you’re tired of your hard earned paycheques helping your landlord build her nest egg. It’s time to lay down some roots in the city or town you call home and there really is no better way to do that than to own your own piece of property. Now that you have made the decision how do you get mortgage pre approved?

Steps to get mortgage pre approved

Your first step, perhaps even before you choose a REALTOR®, should be a visit to your bank and/or mortgage broker. These number-crunching financial professionals and the information they share play a huge part in almost every home buying experience.

To provide you with a true mortgage pre-approval, a lender reviews your income, the source of your down payment, your assets and liabilities, and inspects your credit report to determine your ‘credit-worthiness’. Based on these criteria and a discussion that touches on a comfortable monthly housing payment taking your lifestyle into account, you should come away from this financial dissection with the target price of your new home.

Why should you bother with this step? Simply put, going through the process of getting pre-approved for a mortgage benefits you and sets you up as an educated Buyer in several ways:

  • It effectively sets your $$$ limit. This knowledge will help you focus your time more effectively and will help you to find the balance between what you want and what you can afford. This is a Buyer’s biggest binding constraint and it helps to be aware of it right from the get-go.
  • It will prove to reduce stress! By knowing what you can realistically afford, you will help to eliminate the very real disappointment under-educated Buyers face when they fall in love with a home that just does not work for them financially.
  • When negotiating, you will know where your limit is. Essentially, it can serve to remove much of the emotion buyers naturally feel as they negotiate for the home they want.
  • You may even get a better deal on the home that you want. Sellers like to know that Buyers already have financing in place. It shows that you are serious as a Buyer and that you are ready to take the leap. This can be especially useful if the home you are interested in receives several offers, for example. It sets you apart from the crowd!

The bottom line is that to get mortgage pre approved, provides peace of mind through what can be an emotional experience. I highly recommend it! [su_divider size=”1″]

For more information on how to list and sell your home with the Charlie Parker team call us at (250) 751-1223. Now that you’ve been pre approved check out Nanaimo’s finest homes on my 10 am Gems on Facebook.