Being pre-approved before buying a home in London, Ontario, is necessary in today’s market if you are serious about getting the best place for you without disappointment.
Years ago, buyers didn’t worry about financing their home purchase until after they found the home they wanted to buy. Once they had an accepted offer, they’d shop around for a week or so and then submit a loan application.
The new low inventory of homes for sale in London, Ontario and a very competitive market can make the home buying process a little stressful. To compete better, most buyers are getting pre-approved for a mortgage. The buyer is seen as being stable, has a significant influence in negotiating a purchase price, and the buyer can act when they find a home they love. A pre-approved home buyer is considered as healthy as a cash buyer.
There are two parts to mortgage approval:
- approval of the borrower
- approval of the property.
Mortgage pre-approval is a process whereby the borrower is qualified for a specific mortgage amount. The approval is usually suitable for 1-3 months. A property approval is one with a satisfactory appraisal by an appraiser chosen by the lender after an offer is accepted, that will depend on the downpayment, neighbourhood and price.
Final mortgage approval also requires a purchase agreement that is signed by the buyer and the seller.
Here are a few more tips before buying a house or a condo in London, and to get pre-approved for a mortgage, I partner with two great mortgage specialists who have the skills and ability to get most mortgages approved.