Pre-qualification Makes The Hunt Easier  

Mar 21 2009  When you’re in the market to buy a new home, there are so many things to do and consider that one of the most important steps might be overlooked. Getting pre-qualified on a mortgage can prove to be one of the smartest moves you can make before beginning the hunt for a home in the Toronto real estate market.

Pre-qualification involves seeking out mortgage lenders before trying to find a property to purchase. This means you, your real estate agent and the home seller will know in advance what type of financing you can secure. This gives you better leverage walking into a deal and can help you with such things as:

Focusing the home search – There are a lot of homes for sale in the Toronto real estate market right now. The costs associated with buying run a very wide range. When you get pre-qualification secured, you can narrow the search for properties that are only within the range of money you know you can spend. This helps you save your valuable time by only looking at home you know you can afford.

Locking in interest rates – Pre-qualification often comes with a lock in of interest rates for a set period of time. This means you’ll have a firm offer on rates along with your pre-qualification even if rates do go up while you search.

Better buying leverage – When you and your real estate agent are both perfectly clear on how much money you can spend, you’re both in a better position to negotiate with sellers effectively. The idea, of course, would be not to spend up to your limit, but it’s good to know that top marker in advance.

Finding your dream home will involve a search. It makes sense to expedite the process by getting pre-qualified on a mortgage. When you seek out lenders at the start of a hunt, the entire experience can be much more enjoyable and less stressful. Back to Blog>>