• As I look out my window, it’s still cold and miserable outside in Hamilton. At Robert Floris’s Mortgage Architects office we look forward to the change of season for many reasons including the weather, the spring real estate market and the continued low mortgage rates. Getting ready to buy a home can be just important as the actual purchase. We will look at the 5 main reasons to get pre-approved for consumers from the client’s point of view. As you may be aware we write as if we would give the information we would want. The best way to begin is to describe a pre-approval. A pre-approval is a written assurance from a lender or broker that you’re able to borrow money to purchase a home up to a certain amount. It’s based on the income, employment and asset documentation you supply at the time of application, in conjunction with your credit history.
    1. It’s Just Smart
    Since your credit is being checked b y the lender, you are preventing a problem which you may not be aware of. As well, income is verified to ensure you can validate the mortgage payments. The bottom line is there are no surprises before you go looking at homes.
    2. Affordability
    Buying a realistic home for your budget is very prudent so that you have a ceiling in terms of purchase price when you buy. It makes your purchase price more efficient and helps you consider other factors such as lifestyle and neighborhood.
    3. Helps in Negotiating
    If your in a multiple offer setting, many times the vendor will go with the offer that has been pre-approved. In some cases vendors go with lower offers due to pre-approval on hand which assures that are capable of affording the home.
    4. It is a Time Saver
    Obtaining a mortgage is a lengthy process. Getting pre-approved shortens the time to approved. A good broker will have many of the documents on hand like your down payment and verification of income.
    5. Quality Real Estate Agents Demand a Pre-Approval
    Before spending hours showing homes, a quality real estate agent wants to ensure a pre-approval is in place to improve the chances of a favourable outcome.

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