10 Aug Does Mortgage Preapproval Really Matter?
The real estate market is a changeable one, and there are never any guarantees that you’ll find the home you’re looking for, let alone that you’ll be able to afford it when you do. Of course, that shouldn’t stop you from looking, but it should mean that you think carefully about what you might be able to do to increase your chances of finding and buying, the property of your dreams.
What is mortgage preapproval?
This process involves a lender reviewing your financial information to determine your eligibility for a mortgage, as well as how much you can afford. The lender will pull and review your credit report and score, and collect documents such as tax returns, bank statements, W-2s and pay stubs.
Should you get mortgage preapproval?
While availability can vary drastically from city to city, and even neighborhood to neighborhood, competition is currently pretty fierce, and getting a mortgage preapproval can help you stay one step ahead of the competition; here’s how:
- Mortgage preapproval can get you a showing quicker
More and more nowadays, realtors are refusing to show homes to potential buyers unless they can produce a preapproval letter, so to avoid disappointment, get this done before beginning your search.
- It can give you the confidence to put in an offer
Mortgage preapproval helps you to get a clearer picture of what you can afford to pay in monthly mortgage payments, giving you more confidence to put in offers.
- You could encourage sellers to see you as a low-risk buyer
Having had your buying power verified by a preapproval underwriting team, you can give sellers confidence in your ability to pay, and in some instances, it may even encourage them to see a preapproval-backed offer as being as sound as a cash one.
How can you get mortgage preapproval?
Many lenders, especially nowadays, offer borrowers a convenient online mortgage preapproval process, and you can quickly and easily submit the relevant documentation for items such as pay stubs, tax returns, W-2s and you can even connect virtually to your bank to have your assets verified.
So, if you’re thinking about buying a property in Canada, give yourself the best chance of finding what you’re looking for and securing a great deal, by getting a mortgage preapproval. For more detailed guidance and advice or to get the mortgage ball rolling, connect with your local mortgage broker today.