Are you hoping to buy a home in Halifax this summer? Here, we discuss how the market is performing, and what you need to consider.
Why do you need a pre-approved mortgage? Well, here is a common scenario:
Freddy is tired of renting. Every month he watches his hard earned money going to make someone else richer. This month he had enough and decides it is time to buy. He starts by using how much he pays for rent to calculate what he can afford to borrow using a bank’s calculator. He then jumps online and starts looking at houses online that fit within that budget. Next he starts booking appointments with agents to check the places he likes out. He inevitably finds one that he loves, and works with an agent to make an offer. When he goes to secure his financing, the bank tells him he cannot get a mortgage for as much as he asked, and he has to walk away from the deal. Freddy goes back to paying rent in frustration.
A pre-approved mortgage would have prevented this frustration. And here is how:
He would have worked out with his mortgage broker what he could afford
There is more to getting a mortgage than just figuring out how much you can afford to spend every month. You need to have a deposit. You need to have good credit. To get the best rates and the best advice, you need to work with a broker to figure out the right mix for you.
Having a pre-approval is a great bargaining chip
Home purchase agreements always have conditions attached to them, and one of the most common is financing. Having a pre-approved mortgage means you have the option to strike that as a condition and negotiate down your price based on your ability to complete the transaction with fewer complications.
There are no financing surprises, so no frustration
At the end of the day, having a pre-approved mortgage means you are prepared, and there are fewer surprises that can creep up. You can shop being confident that you have your affairs in order, and enjoy making home ownership a reality.
We would love to sit and talk to you about your options and walk you through a pre-approval. Contact us today and schedule an appointment!