The mortgage pre-approval is the first step to purchasing residential real estate – Unless you have the money to pay cash for your home!

June 17, 2013 - Updated: June 17, 2013

Mortgage Preapproval

A pre-approved mortgage can help you look for a home with confidence.

Looking for the home of your dreams?  Many people think the first step is to start going to open houses and researching the market.

But before you start looking for a home, your first step should be to get pre-approved.

What does this mean?

A pre-approved mortgage simply means that you have reviewed your financial situation with a lender and you know what you can afford to spend on a home in terms of purchase price, down payment, legal fees and other closing costs.  It basically means you know how much you can borrow based on your current financial situation.

There is no cost or obligation to have a mortgage pre-approval and you will know in advance what the mortgage payments could be and the interest rate will usually be guaranteed for 120 days or approximately 4 months.

That means you are protected if interest rates increase while you are house hunting.

Your realtor can now locate and most importantly negotiate with confidence on the home that is right for you.

It is worth noting as a buyer, that it is in your best interest to enlist the aid of a realtor to work for you.  They will work to ensure your needs are met and best of all it doesn’t cost you a nickel as the seller has to pay the buyer agent commission!

Avoid the disappointment of finding your perfect home only to learn there is no way you can afford it!

As a mortgage specialist, I ensure that I take a consultative approach with all my clients so they fully understand their options and they leave fully educated and excited to get their realtor working for them to make that home purchase a reality.

By Dion Mahadeo – Mortgage Specialist at RBC Royal Bank

 

For more information about mortgages please email:  mortgages@toddlee.ca


Tagged with: buying real estate mortgage
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