Tips on Mortgage Preapproval
The real estate market in the Durham region and Northumberland is as hot as ever. In a seller’s market, it’s not unusual for home sellers to receive multiple offers from potential homebuyers. This is where being preapproved for a mortgage will help the homebuyer significantly.
Once you’ve found your dream home in Oshawa, it can be nerve-wracking waiting on a decision after putting in an offer. Worse is when you get the call saying that the home seller chose another offer.
How do you stop from missing out on your dream home? How do you make your offer stand out from the pack?
Two words: mortgage pre-approval.
Consider this from a home seller’s perspective. If you had multiple equal offers, would you choose the one that had written pre-approval or one that was conditional on financing? Of course, you would go with the sure thing.
Here are some tips on mortgage pre-approval to get you started.
- Start early
- Shop around
- Use a real estate agent
Preapproved for a Mortgage Tip #1: Start Early
Some homebuyers wait until they’ve found a home to put in an offer on before searching for financing. This is a mistake that will cost you time and money!
The sooner you get approved for financing, the sooner you can have a realistic potential homes list.
And, as noted above, having pre-approved financing can be a great bargaining chip at the negotiation stage.
Preapproved for a Mortgage Tip #2: Shop Around
Did you know that there are big differences from one mortgage to the next? Your lending institution may have a significantly higher rate than others.
It’s important to shop around to get the best rates. Don’t assume that the financial institution you use has the best rates. Do your homework and find the lowest rate by contacting a certified mortgage professional.
Once you’ve targeted the lowest mortgage financing rates, get your pre-approval in writing. This is usually offered at no fee and no obligation. From a home seller’s perspective, a written pre-approval is as good as money in the bank.
Preapproved for a Mortgage Tip #3: Use a Real Estate Agent
Did you think that all real estate agents did was find and sell houses?
One great way a real estate agent can help you is at the negotiating table. They can help point out the advantages of mortgage pre-approval and help negotiate the lowest closing costs.
Another way is, with the right agent, some banks prefer working with specific agents. As such, they may be willing to extend a lower financing rate.
Don’t miss out on your dream home. Start early, shop around, and work with a real estate agent to give you the best possible price on a new home. At Your Home Sold Guaranteed Realty of Ontario, we guarantee in writing to get you the best possible price on a home, fast!
Need More Help Getting Preapproved for a Mortgage?
Or, to get started on your mortgage pre-approval, fill out the below form to contact a certified mortgage professional who will help you find the best mortgage rate and lowest closing costs.