Mortgage Blog
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Five Reasons to get Pre-Approved!
August 16, 2021 | Posted by: Marc Crossman
Whether you’re thinking of buying your first home or planning to upgrade or renovate, you’ll find there are great benefits to getting pre-approved for a mortgage.
1. A Mortgage Loan Pre-Approval Will Save You Time!
By getting pre-approved, you will know exactly how much of a loan you will be able to get. Once you share this with your realtor, it will allow them to take you to check out homes that you can actually afford!
2. Avoid Disappointment - Get a Mortgage Loan Pre-Approval!
Can you imagine how disappointing it would be to put an offer in on the home of your dreams, only to find out that your loan has been denied? Getting pre-approved makes you 100% sure of what you can afford before you shop for a home!
3. A Mortgage Loan Pre-Approval Increases Your Negotiating Power
A pre-approval will benefit you by bettering your bargaining position and possibly save you money. In the real-estate market, many of the best properties often attract multiple offers. This is where you gain a competing advantage.
Unless any competing offers are backed up by pre-approvals as well, you will be in a better negotiating position.
4. A Mortgage Loan Pre-Approval Could Save You Money!
Pre-approval locks in the interest rate for a specific period of time (often for around 3 months). This could save you significant money.
For example, if you purchased a home three months after getting pre-approved and, by this time, the mortgage rates have gone up - you would get your loan at the lower secured rate. As well, if the interest rate goes down during that time, you will simply get that better interest rate on your loan.
5. Your Realtor Prefers You Get a Mortgage Loan Pre-Approval
Another great reason to get a mortgage loan pre-approval is it shows your realtor that you are serious and a motivated buyer.
There are few things more frustrating for everyone involved - real estate agents, homebuyers, and home sellers - than to get to near the end of this long process and your loan not being approved.
Should you have any questions or want to get started, contact us today at 780 701 3888 or email marc@albertamortgagepros.ca
