The Honest Truth About Getting Mortgage Pre-Approval
Let’s take a look at two scenarios to find out which one sounds more familiar for you.
Scenario 1.
Searching online, you’ve found a beautiful house that fulfills every item on your checklist. It’s close to work, it’s in a nice neighbourhood, it has more bedrooms than you thought you wanted and it’s even got a nice, big balcony. Oh yeah, and it’s beautiful, too!
The price looks reasonable as well, you’re sure you’ll be able to afford it, so you call a mortgage broker so you can buy your dream house.
And a couple things happen:
- the mortgage process isn’t as fast as you thought
- you get frustrated and stressed
- ultimately, someone else buys the house
Scenario 2.
Searching online in your spare time, you’ve found several suitable options for a new home. Before you view a home or get too far along, you call a mortgage broker to start the process of getting pre-approval. The bad news is that you don’t qualify for quite as much as you wanted.
That’s alright, you say. Now you know exactly how much you can afford.
And a couple things happen:
- you ignore homes above your price point
- you stay relaxed and realistic about your prospects
- you take your time and find the right home at the right price
Why Mortgage Pre-Approval is Crucial
Look, on paper it’s pretty obvious which scenario will save you more grief in the long-run. It’s natural for people to casually browse listings online while they’re considering a new home, but it’s important not to get ahead of yourself. Falling in love with a home you can’t quite afford is a bummer, but going into the process armed with knowledge about your limits will condition you to think practically about your options.
Mortgage pre-approval lets you move on to the fun part stress-free, finding a home you’ll live in and love. It also tells you how much your payments will be so you can easily plan for the next phase in your life.
Ready to start looking? Get pre-approval first!
