The Importance of a Mortgage Pre-Approval

The crucial step you should take before finding your dream home: mortgage pre-approval. Whether you're a first-time buyer or a seasoned pro, here's why getting pre-approved is essential for a successful home buying journey.

What is mortgage pre-approval?

The pre-approval provides buyers with important information that helps with their Edmonton home search. When you get pre-approved for a mortgage, you find out the maximum amount you can spend on a home, the monthly mortgage payment associated with your maximum purchase price and what your mortgage rate would be for your first mortgage term.

Know Your Purchasing Power

One of the most significant benefits of mortgage pre-approval is the ability to know your purchasing power. By getting pre-approved, you'll know your maximum budget and can avoid wasting time and energy on homes that are out of your price range. You'll be able to focus your search on homes you can afford, which will save you a lot of time and stress in the long run.

Stronger Negotiating Position

Mortgage pre-approval can also strengthen your negotiating position. When you put an offer on a home, sellers want to know that you're a serious buyer who can follow through with the purchase. A pre-approval letter shows that you have already been vetted by a lender and that you're capable of obtaining financing. This can give you an edge over other homebuyers who do not have pre-approval and can ultimately lead to a successful offer.

Faster Closing Process

Once you've found the home of your dreams, the last thing you want is a lengthy closing process. With a pre-approval in hand, you'll have taken care of much of the paperwork and taken steps to ensure the financing can be provided. This can speed up the closing process and get you into your new home much faster than if you were starting from scratch.

Understand the Loan Process Better

Mortgage pre-approval can also help you to understand the loan process better. By meeting with a lender early on, you'll learn about the different types of loans available and which ones are best for you. This will provide you with a better understanding of the loan process and make you more comfortable with the terms and rates that come with your loan.

Peace of Mind

Lastly, mortgage pre-approval provides peace of mind to homebuyers. Knowing you have been pre-approved can reduce anxiety and stress surrounding the often-daunting home-buying process. You’ll know what you can afford and won’t be left wondering or worrying about whether you’ll be approved for a loan. 

Olga Klimko

Edmonton Mortgage Specialist

Olga is on a mission to help our customers fulfill their dreams of homeownership. Her incredible ability to provide customized solutions tailored to each individual needs through an exceptional level of customer service is what makes her so iconic. 

It is her goal to make the journey from pre-qualifying buyers all the way through possession day as convenient and stress-free as possible. With Olga by your side, you can rest assured knowing that you have a committed professional ready and willing to assist in making your vision a reality!

Contact Olga Today:  780-990-4121

Mortgage Calculator

This calculator is for information purposes only. Users should not use this calculator to make any financial decisions and should speak with their bank or mortgage broker. The website owner does not guarantee the accuracy or reliability of any information or calculations provided by this calculator. The website owner is not liable for loss or damage of any kind arising from the use of this tool.
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