Top 5 reasons to get preapproved
Most real estate experts emphasize the importance of being pre-approved for financing before you start shopping for a home. But do they tell you why?
There are more advantages to pre-approval than most people realize.
1. Save time and effort
Searching the Internet for possible homes can be very time consuming. Knowing your buying power can eliminate wasted time and effort.
Using your pre-approved price range as part of your home search eliminates all homes that are beyond your purchasing ability. This allows you more time to focus on the homes that you can afford.
Special Note: CanadianHomeFind.com has a listing notification system. From your account, simply click 'My Notifications'. Then fill in your home search requirements, including price range, area and home size, and our automated service will orward all future listings that meet your criteria directly to your email as they are submitted. No more missed opportunities!
2. Better use of time
Now you can spend more time on the features of each home. Many buyers never get past the price factor when deciding which homes to consider. By eliminating the dilemma of pricing, a buyer can take more time to determine the aspects of the home.
The features that each home may offer are highly overlooked when determining which homes to view. You may want to spend some of your energy looking at the finer details of the home such as: Do both cars fit in the garage? Is the floor plan going to meet your family's needs? Is there enough space for a theatre room? Etc.
Spending some quality time looking at the details of each property prior to viewing will save time later by eliminating homes that don't meet your family's needs.
3. Gain confidence
Knowing your buying power removes the stress of uncertainty. When you find a home that meets your needs, and you are already pre-approved, then you can make an offer to purchase with total confidence. You already have your mortgage approval, and will rest easy knowing your home choice is within your financial ability.
4. Increase your bargaining power
With the confidence of financial security you can put the seller's mind at ease as well. Sellers are far more likely to immediately accept an offer from a pre-approved buyer, even if the offer is less than the asking price. Sellers view pre-approval as a solid offer, and start to look at the offer as 'Sold'.
5. Quicker possession dates
Because you don't need the extra time to arrange your financing application process, the lender can speed up the process. Remember pre-approval means you personally qualify for the loan amount, but your financing is not complete. In the final step, the lender must show that the home you have chosen is worth the amount of money you will be receiving. An appraisal will probably be required.
When the lender pre-approves the loan, he or she may shorten the closing time in half. Sellers gladly accept offers that show a short period for condition removal.
Pre-approval is one of the most important first steps in home hunting. It eliminates stress, uncertainty and confusion for both buyers and sellers. Take the time to talk to your lender and shop smart. Get pre-approved.