Pre-Approved Mortgages

Acquiring a Pre-Approved Mortgage

Published - June 7th 2016 2 minute read.

When making the decision to start looking at Owen Sound homes for sale, there are certain steps you know you will need to make. These steps come at different stages in the process beginning with finding the right Owen Sound REALTOR®. During your negotiations you will need to fulfill several clauses in your Agreement of Purchase and Sale. One such clause will be to secure a first mortgage. These applications take time to process and if you are denied your first time you will need to reapply through a different lender. The clauses in your Agreement of Purchase and Sale have time limits on them and failing to satisfy all of your clauses on time may lead to the deal falling through and losing out on a house you had your heart set on. Avoid this disappointment by acquiring a pre-approved mortgage before you start looking at properties. This will save you the stress of racing to satisfy a clause at the last minute, as you already know you have approval for the mortgage you are applying for. Here are a few reasons why pre-approved mortgages are a sound investment, and well worth your time.

  1. Pre-qualification vs. Pre-approval — A mortgage pre-qualification can be useful. It will help you determine how much you qualify for and the price range in which you should be looking. However a pre-approved mortgage is much more valuable. Pre-approval means that the lender has already conducted your credit check and has approved a specific loan amount.
  2. Advantages in negotiations — Coming to the table with a pre-approved mortgage shows the Seller that you are a serious Buyer and that your offer is worth considering. A Seller may choose your offer, even if it is slightly lower, on the basis that you are more likely to follow through with the sale.
  3. Gives you a specific price range — Having a pre-approved mortgage before looking at Owen Sound homes for sale will help you narrow down what you can and cannot afford.

Benefits of a Pre-Approved Mortgage in Owen Sound

When preparing to enter the Owen Sound Real Estate Market it helps to know exactly what you are looking for. Acquiring a pre-approved mortgage can help ease the stress and narrow down your budget so that you can view homes with in it. Contact an real estate agent if you need additional help on getting a mortgage or finding that perfect home in Owen Sound to purchase.

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