So you’ve decided that 2020 is the year you finally become a homeowner? Congratulations! But before you start looking at property listings in Brampton or visiting open houses, your first step should be to get a mortgage pre-approval.
It is important to note that mortgage pre-approval in Brampton is not the same thing as pre-qualification. A pre-qualification is a lender’s “best guess” as to how much of a mortgage you might be able to get. A pre-approval is a little more involved. It requires a credit check and financial documentation.
Why should you get a mortgage pre-approval in Brampton?
There are many reasons why you should get a mortgage pre-approval before you begin searching for a house. For starters, a pre-approval will let you know how much of a mortgage you can afford. That way you don’t waste a lot of time looking at homes that are out of your price range.
If you are house hunting with the help of a real estate agent, you will likely be required to get a mortgage pre-approval before they will work with you. Since real estate agents only get paid when you actually purchase a house, most will not work with someone who doesn’t have their mortgage pre-approval. The pre-approval shows them that you are a serious buyer and that you can afford to buy a home.
Finally, getting a mortgage pre-approval can give you an advantage when you finally put an offer on a home. In this competitive housing market, sellers often get multiple offers on their home. Rather than risk an offer falling through, a seller will be more likely to accept an offer from someone who already has a mortgage pre-approval (as opposed to someone who only has a mortgage pre-qualification).
A word of caution
Just because you get a mortgage pre-approval in Brampton, it doesn’t mean you are guaranteed to get a mortgage from that lender. Changes to your credit or financial situation can put your pre-approval at risk. For this reason, you should avoid things like major purchases or job changes until after you have closed on your home.
If you dream of becoming a homeowner in 2020, you have to protect that dream and part of that means not risking your pre-approval.
Contact Clarity Financial today!
If you are ready to get a mortgage pre-approval in Brampton, I am ready to help! Contact me today for a consultation.