Getting Pre-approved Is More Important Than Ever

By
Real Estate Agent with RE/MAX Hallmark Realty Group Ottawa

With interest rates on the rise and many housing policy changes over the past year, it's more important than ever for first-time home buyers to have their mortgage pre-approval in hand when beginning the search for a new home.

There are a few reasons why getting pre-approved is so important as you begin the journey towards home ownership. For one, it takes the guesswork out of house hunting! There's no sense in viewing and falling in love with a home you can't afford. You can streamline the process and keep only true contenders in the running when you are aware how much you can afford to spend on your new home. Another reason to get pre-approved is that it shows that you're a serious buyer. Both real estate sales persons and sellers will recognize that you have done your homework and are truly ready to buy. In fact, having a pre-approval in hand may give you negotiating power over another buyer who has not been pre-approved.

Getting pre-approved will also help things move along quicker and smoother during a negotiation. It will allow you to act fast when placing an offer on a home. By getting pre-approved you have started the application process for the mortgage. They will provide you with a pre-approval letter, though it is important to remember that this is not a guarantee of financing. Most realtors will still recommend that you include a condition on financing in any offers you submit.

What is a mortgage commitment letter? A little more in-depth than a mortgage pre-approval, a mortgage loan commitment letter means that a full mortgage application was taken, the loan has passed through underwriting and the borrower was approved. A commitment letter is a document that lets everyone in the real estate transaction (real estate sales persons, sellers, etc.) know that the lender is prepared to take on a loan that will cover the cost of a home.

The simple step of getting pre-approved will make your home buying experience run smoother.
Call Irene Bilinski 613-858-1151 for resources or more information on why you should be pre-approved. 
Team Irene Bilinkski - where Real Estate Is All About You! 

Posted by

Irene Bilinski, ASA
Bilingual Sales Representative

RE/MAX Hallmark Realty Group Ottawa

Direct (613) 858-1151
Office (613) 590-3000

www.irenebilinski.com

Real Estate… it’s all about You!

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Rainmaker
1,696,537
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

a good post to explain the difference to buyers who may may be confused! 

Jan 06, 2018 05:27 AM #1
Rainmaker
42,302
David Wright
Benchmark Realty, LLC - Brentwood, TN
Real Estate Refined

 you are so right. There is not much more wasteful than driving a client around to see houses, select one, only to find out they either can't qualify for that price of a home or worse, not qualify at all. In hot markets, like we have seen, a Realtor® dare not make an offer for an unqualified buyer, the sellers will not even seriously consider their offer.

Jan 06, 2018 07:19 AM #2
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I don't put someone in my car unless they're pre-approved. No sense wasting both of our time looking at homes they may or may not qualify for. 

Jan 06, 2018 03:39 PM #3
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