Planning to buy a new property in a big city? Getting a pre-approved status is one of the best things you can do to get a better deal. Sellers are looking for payment-ready buyers. Getting approval from your bank or financial institution will take some time. So, whether you are looking for condos for sale in Ajax or any other part of a big city, being pre-approved can help you lock in the deal much quicker.
Getting pre-approved is not that much of a hassle either. All you need to do is to be sure about your willingness to buy a property and visit your bank. Many banks have started to provide pre-approval status to help wishful buyers land a property deal. It is particularly beneficial for first-time buyers as well. So, here are some of the top advantages of getting pre-approved when looking to buy a new property:
1: You Will Get a Better Idea of What You Can Afford
It is getting hard to know how much you will get from the banks in terms of mortgages. Also, with rising prices and interest rates, many properties are getting out of budget for many buyers. So, when you can get a pre-approved status, you will know exactly what the bank can lend.
While online mortgage calculators give you a fairly good idea of the affordability, it will be just a ballpark idea. You cannot plan your expenses around this non-realistic calculation. When you get pre-approved, the bank will tell you exactly what you will be paying, and for how long.
Also, if you are already under debt, the bank will factor that in as well. Mortgage brokers or lenders go through your credit when you go to them for pre-approval as well. They will ask you about all the expenses and loans to give you a detailed breakdown.
2: Save Your Time and Hassle with a Pre-Approved Status
Calling property owners and scheduling your showings is like jumping into a swimming pool. You can get as many showings as you can possibly find time to attend. However, all of that can be pretty time-consuming and frankly, time-wasting.
How useful is a showing if you cannot even afford the property? A pre-approved status will let you know exactly what showing to schedule and which ones to ignore no matter how much you love the property. This helps save time and hassle.
Also, going in with a pre-approved status tells the landlord or their realtor that you are going with intent. It tells them you are just not there for the views. So, it is a good idea to get pre-approved before seeing a property that you are interested in.
3: Narrow Down Your Search by Selecting Relevant Properties
Pre-approvals are detailed analyses of what you can buy. They will tell you if you can get a 3-bedroom property or a 2-bedroom right now. So, you will be able to do your research in a much more concise and meaningful way with a pre-approved status.
If you afford a 1-bedroom or 1-plus-dens property right now, it should be the one you should be searching for. Narrowing down your search, a pre-approved status can help you focus on the nice ones in your range. You will see more properties you would other ignore for larger ones you don’t afford.
Also, with a narrowed-down search, you will be able to find the best property quickly. With pre-approved information, you will be able to process things much better as well.
4: Get a Competitive Edge Over Other Bidders and Buyers
Property owners and agents selling a property are always looking for payment-ready buyers. Also, no matter how quick the approval process becomes at banks, it will still take some time. Conversely, when you are pre-approved, you will be first in line to be selected as the buyer.
Also, with bidding wars happening on so many properties, yes, sellers select the buyers they like the most. Of course, factors will include the highest bid and also readiness to pay.
So, gain a competitive edge by getting a pre-approval status for your property purchase. It will not take much time when you do it before shortlisting the property on target. However, it can take longer once you have a property lined up and a property owner waiting for payment.
5: Find Out Your Upper Limit and How Much You Will Have to Put in
When looking for the best condos for sale in Scarborough, or any part of a big city, you need to be sure about your ceiling of affordability. Banks and lenders will only be willing to lend a certain amount. If the property you fell in love with is priced slightly higher, you will have to manage the rest on your own.
By getting a pre-approval status, you will find out the highest amount banks will be willing to pay. Also, you will find out exactly how much you are going to have to arrange on your own. So, if your parents are helping out, this will be a great one.
6: Become a More Desirable Buyer with a Pre-Approved Status
Sellers will always be looking for the best buyer for their property. A pre-approved status goes a long way toward making you a desirable buyer. Also, sellers prefer firm offers when selling their property. This is something only pre-approved buyers will be able to offer.
Also, in case you are bidding slightly lower than a buyer who is not pre-approved, more sellers will tilt toward you if you are pre-approved. It is a nice thing to go into a showing with a pre-approved status. It will make you the top potential buyer in the eyes of sellers.
And Finally
Getting a pre-approved status is very easy and brings many benefits with it. You will get a good idea of what you can purchase and narrow down your search accordingly. Also, you will be in a better position to make a firm offer based on knowing your finances. Visit your bank before going to a showing and become the top priority buyers with a pre-approved status.
