Pre-approval is a process many of first-time homeowners do not think is important when obtaining a Red Deer Mortgage. So, to give you a better understanding, Tania Grozelle, Regional Mortgage Group, have listed everything you need to know about getting pre-approved for a mortgage and why it should be step one in your home search.
The Importance of Pre-Approval
Getting pre-approved can offer a first-time homeowner at least 5 separate benefits.
When you get pre-approved by Red Deer mortgage broker Tania Grozelle, she will go through your finances and tell you what type of mortgage you can afford. Once you have an idea on the type of payments you may have, you will know what price range to shop in when looking for a home. This can prevent you from viewing homes that are outside your budget.
Pre-approval gives first-time homebuyers more credibility with sellers because it shows that you are financially capable of owning a home. Therefore, if you happen to be in the middle of a bidding war with another family, the seller will be more inclined to pick the buyer who has been pre-approved over the buyer who has not – every time.
- Wider Market
Most real estate agents refuse to work with buyers who have not been pre-approved. This is because pre-approval shows you are serious about becoming a homeowner, and a realtor does not want to waste their time with someone who is not truly interested in purchasing a home. Therefore, by working with a real estate agent, you will have access to a wider market.
- Saves Time
When you get pre-approved, your mortgage broker in Red Deer Tania Grozelle will collect all the important financial documentation and will run a credit check on your finances. By having this information already collected, your mortgage application could be processed significantly faster than those who have not been pre-approved.
- Better Rates
With pre-approval comes more credibility, which means sellers will be more likely to offer you a better deal. You will also have more of a negotiation power and could ask for a cheaper rate if it is not already offered.
With all these benefits associated with getting pre-approved, you should make this your number one priority before you begin searching the residential market.
If you would like to know more information about the pre-approval process or to get started on your application, please contact The Regional Mortgage Group at 403-392-5808.