How Important is it to Get Pre-Approval for a Mortgage?
Knowing what your budget is will not only help focus the search for your new home, it will also assist you significantly in this sellers market.
Calgary’s real estate market is very competitive, and it’s not uncommon for buyers to find themselves in a situation where they’re bidding against other buyers for the same property. Buyers that have already undergone the pre-approval process have greater buying power in these situations.
1. When a pre-approval letter is presented alongside an offer, sellers will often look more seriously at the proposal, as opposed to offers made without pre-approval.
2. Buyers in a competitive situation are often forced to adhere to a shorter condition date. If already pre-approved, the bank will have all the pertinent information available, getting the financing condition removed quickly.
The Chamberlain Group clients, Sophia and Kenny, can attest to the importance of the pre-approval process. After weeks of searching for a home for their mom, they found a place in Calgary's NE. While other buyers were interested in the same property, the seller, knowing that Sophia and Kenny were already pre-approved for their mortgage, opted to take their offer over another. Sophia says,
When we were able to bring mom over to her new place, showing her what we just bought, Alex [TCG's Expert Advisor] asked her: "So, do you like your new place?" She replied: "Boy, do I ever!" We are so relieved that we found the right place for mom, and are so glad that we were able to come out on top during the negotiations.
Because Sophia and Kenny underwent the pre-approval process, they had more power in purchase negotiations, and they can rest easy knowing that their mom has the right home for her new stage in life.
Interested in knowing what you could be pre-approved for? Contact The Chamberlain Group by emailing [email protected], or phoning 403-366-3130, and we can put you in touch with some reputable mortgage brokers in Calgary.
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