Serious About Buying a Home? Get Pre-Approved First
Wednesday Aug 30th, 2017Share
Across the Greater Toronto Area, and especially within Mississauga, the number of buyers searching for their dream home greatly outweighs the number of available listings. Competition is one word – fierce. As such, buyers need to stand out from the rest. And, one way to do so is by being pre-approved for a mortgage before making an offer on a new home.
Even in a non-competitive market, getting pre-approved is a great way to know how much you can afford. This extra step in the home buying process will help you go in at offer time feeling confident, full of peace of mind and with your best foot forward.
The pre-approval process is very straightforward too. Once you select your lender, you’ll need to fill out a loan application and provide them with important information regarding your credit, debt, work history, down payment and residential history.
From there, the lender will determine the amount you will be qualified to borrow based on the “four Cs”:
• Capacity: your current and future ability to make your payments
• Capital: the money, savings and investments you have that can be sold quickly for cash
• Collateral: the home that you would like to purchase
• Credit: your history of paying bills and other debts on time
Once you know how much you can borrow, this will help you stand out against other buyers vying for properties in the ever-competitive GTA real estate market. From a home sellers’ perspective, placing an offer with pre-approval also shows that you are serious about buying, which can often speed up the process once your offer has been accepted. And, for most sellers, a quick sale is always preferred.
To learn more about getting pre-approved for a mortgage loan, it’s best to connect with a real estate professional, like myself, who has established relationships with many trusted mortgage lenders across the GTA. These are professionals that we trust to give our clients the best advice and guidance, so they can feel confident come offer time. After all, a little peace of mind goes a long way when purchasing your life’s largest investment – your home.