In a market that’s this hot, we’re seeing lots of multi-offer situations. It’s been a little bit crazy out there! So, if you want to increase your odds of landing your dream home, it’s best to show up to the table with your mortgage pre-approval in hand.
It doesn’t matter which bank issued it to you – the only important thing is to have the right information in terms of loan amount and how long it’s valid. Simply put, this is the easiest way to make sure your offer will be considered.
Recently, our brokerage had eight offers presented on one of our properties. And when it came to buyers who did not submit a pre-approval with their offer, we simply didn’t consider them, because they weren’t able to show that they were serious or qualified enough to close on the home.
The second thing to consider is that a lot of clients have had their property search evolve along the way. For example, you may start looking for a single-family home, then pivot to a duplex if you decide you also want some rental revenue. In cases like these, you’ll need to speak to your bank again and get a new pre-approval that takes these new factors into account.
The next important factor is that mortgage rates are ever-changing. They’ve actually been decreasing a fair bit recently, and most people’s purchasing power has gone up as a result. It’s important to speak to your banker frequently so you can receive an updated amount – because sometimes, in this market, $5,000 can be the difference between you getting the home and not getting the home.
So, those are our top three pre-approval insights for prospective home buyers. To learn more about best practices while navigating the property market, reach out to our team – we’ll be happy to drop a few pointers!