Home-buyers keep this in mind:
When making an offer on a property, a vendor will favour a pre-approved buyer.
What does that mean to you as a buyer?
It means that before you go on house shopping, you need to get your finances in check. And the first thing you need to do is get pre-approved. By doing this, not only you show to the potential sellers that you’re serious, but it also secures you with an amount of money you know for sure you are eligible for.
“THE SAVVY homeBUYER OF TODAY SHOPS THE MORTGAGE FIRST AND THEN KNOWING EXACTLY HOW MUCH THEY CAN AFFORD, WILL THEN SEEK ONLY PROPERTIES THAT ARE WITHIN THEIR REACH. “- FRASER BEACH. TORONTO RE BLOG
More often than not, buyers begin looking for homes even before they know how much they can spend.They go about the process completely backwards.
Spending several weeks, months (sometimes even years), looking at Real Estate ads, driving through neighbourhoods and attending open houses looking for the perfect home. Once they’ve found the home of their dreams, they make a purchase offer conditional to obtaining financing.
And then they shop for a loan.
The risk in using this “buying strategy” is that if their financing doesn’t pass, a lot of frustration occurs for both sellers and buyers alike. The wasted time could have been avoided simply by getting a pre-approval letter.
Moral of this story: Don’t miss out when buying the home of your dreams.
Be a savvy buyer. Get prepared before making an offer.