What is a mortgage pre-approval?
An Online mortgage approval is a promise made by a company (lender) that outlines the conditions under which they’ll lend you money, such as the interest rate. The lender states, “Based on what you have informed us about your situation and qualifications, we will grant you money for a mortgage.” Earnings, creditworthiness and down payment size are the three most crucial factors that these banks consider.
Why Your Realtor Needs to Know This
You are doing yourself a favour if you try to buy real estate in today’s busy market without being pre-approved. When making the biggest purchase of your life, be ready. This is not the time to put things off. Your realtor will be grateful that you took the necessary measures to ensure they can buy a property.
Pre-approval: Why It’s Important
Because the borrower may assess the size of their down payment and the size of a mortgage they can borrow, it helps reduce the available possibilities for purchases.
If a buyer is not pre-approved, they risk purchasing their means and not being approved for a mortgage. Knowing how much money banks, lenders like top mortgage brokers in Ontario, or credit unions are ready to lend you depends on being pre-approved. Set reasonable expectations for what customers can purchase.
By streamlining the demands, realistic expectations make the purchasing process much smoother and quicker. This eliminates the need for the buyer to visit residences that are unrealistic.
Most importantly, having a pre-approval when it’s time to close on a property acquisition reduces stress and the likelihood of defaults due to insufficient financing.
How to get pre-approved for a mortgage
With Homewise, getting pre-approved is simpler than ever. Begin your application right now.
