The Power of a Pre-Approval

March 25, 2024 | Posted by: Sharon Patton

While getting a quick qualifier on a website or app, can give you a ballpark estimate of what you can afford, a pre-approval is where the real magic happens.

Mortgage pre-approval means that we have reviewed all your documents in detail, including income, investments, credit, and more. From there we can determine what mortgage amount you qualify for. A pre-approval specifies a term, interest rate, and mortgage amount and is valid for a set period of time.

Let's look at the power of having a pre-approval below.

Power of Affordability

Not only does a pre-approval make the search easier for you, it helps your real estate agent find the best home in your price range.

Power of Protection

Getting a pre-approval does guarantee the rate offered to you will be locked in from 90 to 120 days! If interest rates increase while you are searching for your home, your rate is protected. If rates decrease, we will shop around and ensure that your rate reflects the current rates at that time.

Power of Negotiation

Lastly, a pre-approval lets the seller know that you can make the purchase. This is extremely beneficial in competitive markets where lots of offers are coming in for the property.

Keep in mind that along with your downpayment, there will be closing costs. These can range from 1 to 4% of the purchase price. These costs include land transfer tax, legal fees, title insurance, and more. Factoring these into your maximum budget can help narrow down an affordable home and ensure future financial stability and security.

Let's chat before you begin the process of buying a home, and have the power of a pre-approval in place. This lets you shop for the home you can afford with confidence.

financial security.

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