Not getting pre-approved for a mortgage before house hunting is a common mistake made by first time home buyers.
Many buyers are so excited to start looking at houses that they often forget about the finances because let’s face it house shopping is fun, and finances are not. Though skipping this important step can lead to disappointment and wasted time for both you and your realtor.
What is pre-approval?
Briefly put: It’s a written letter from a lender saying you are qualified to borrow a certain amount of money to put towards buying a house. The lender will look at your income, expenses, debt and spending habits, including your credit report and score to determine your creditworthiness.
Why is it so important?
One of the most important reasons is it keeps your expectations in check. Many first time buyers underestimate the cost of buying a home therefore they look at houses that are way out of their budget. Would you want to fall in love with your dream home, go through all the work and stress of putting in an offer only to find out its way out of your budget? Once you have looked at homes out of your budget it is very hard to lower your expectation.
So save yourself the time and heart ache and get pre-approved BEFORE looking at houses.
Another benefit of being preapproved is it can make your offer more appealing in multiple offer situations. If two offers are very similar they will go with buyers that have been preapproved because the seller is more confidant that the deal won’t fall apart due to financing. It could also help you firm up quicker since you have already started your financing. BONUS: It doesn’t cost you anything and you are not obligated to choose that mortgage broker, so why not get pre-approved for a mortgage?
For those of your house shopping in Guelph & the surrounding area here are some mortgage agents we recommend:
Dario Di Renzo From Mortgage Guys
Phone: 519-341-6900
E-mail: info@mortgageguys.com
Ann-Marie Goodfellow From TD
Phone:519-820-0140
E-mail: Ann-Marie.Goodfellow@td.com
Kyle Allen From Synergy Mortgage Group
Phone: 289-208-7975
E-mail: kyle@synergymortgagegroup.com
Anu Luthra From RBC
Phone: 519-362-4700
E-mail: anu.luthra@rbc.com
Paul Gazzola From Guelph Mortgage Architects
Phone: 519-763-6436
E-mail: paul.gazzola@mtgarc.ca
