Why Looking for a Mortgage Before Looking for a Home Is a Good Idea

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Shopping for a new home is exciting. Considering what your “must-haves” are and thinking about neighbourhoods never feels like a chore. When it comes to buying a home, most people often start searching for a home before mortgage research. But perhaps you should be thinking the other way around. Looking for a mortgage broker to help you prioritize can make the process easier in the long run. Starting with the home financing can make the buying and shopping process easier for a number of reasons.
Competitive Markets
Knowing that you’re pre-approved for financing can make you a more appealing choice for sellers and their real estate agents. Being the individual placing an offer with pre-approved financing puts your offer ahead of the competition right away. In competitive markets, this advantage can be the difference between getting your dream home and losing out to another offer.
Consider the Victoria, BC market. This competitive market means that houses are selling nearly as quickly as they’re becoming available. A meeting with a mortgage broker in Victoria, BC for pre-approval can help you have a competitive edge in a fast-paced market.
Realistic Expectations
We’ve all been there. You find yourself standing in a store and looking at an item you really want to buy while wondering if you can realistically afford it. Mortgage pre-approval is the same as walking into a store knowing exactly what you can spend. This kind of knowledge can help you set realistic expectations for yourself as well as your REALTOR® when searching for potential homes.
Speaking with a mortgage broker about what you want in a home can help you to prioritize once you know what you can afford. Knowing what you can afford before starting the home search may not seem exciting, but it makes the shopping process much easier. When you have a realistic budget to work within, you quickly become aware of your “must-haves” and your “nice-to-haves”.
Spending months looking at homes only to find out you cannot afford that price bracket can be disheartening. By making your mortgage the first step, and meeting with a mortgage broker before a REALTOR®, you know exactly what you can afford. This knowledge can help you to efficiently search for a home or decide to wait a few years to deal with debt, save more, or work on your credit score.
Another benefit to putting the mortgage before the home search is that it can take time to find a competitive rate. Giving yourself time when it comes to securing a mortgage means you can research what is out there and find out what will work best for you. Oftentimes, buyers think that finding the perfect house to put an offer on is what will take the most time. What people tend to underestimate, though, is the amount of time they should be spending researching lending rates. A qualified Mortgage Broker can help you find out what rates you might be looking at if you want a fixed or variable mortgage, and how you compare against the qualifying rates.
Pre-approval is a vital step in the home buying process. Taking the time to understand the mortgage approval process and what you can afford before looking for a home can save you time and money. If you’re interested in learning what you can afford before you start your home search in Victoria, BC, get in touch today.
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