Something we always recommend prior to starting your home search is speaking with a mortgage broker and learning where you stand. Being pre-approved for a mortgage ensure a smooth transition to homeownership and here is why;
1. You will know much money you have to work with
Your mortgage broker will be able to make a plan with you on what a realistic budget will be to purchase property. Ensure you speak of your portfolio goals to make a plan on how this property can get you to the next. The more details the better!
2. Your search will be narrowed down
Having a budget in mind, you will be able to narrow down properties to consider, saving yourself time. This will also help your realtor be able to identify properties that will better fit your budget & lifestyle!
3. You become a more competitive buyer
As the market heats up, you will feel confident and firm in your offers. When the market is hot and competitiveness is high, time is of the essence. During the time it would take to consult a broker after interest in a property, another offer could come in from a party that has already been pre-approved. It is for this reason that you also become a more desirable buyer!
4. It may shorten your closing period.
Step one on purchasing a property is always financing. The process can be time consuming. With being pre-approved, you will be able to move up your completion dates and move in to your property faster!