It never hurts to look online or visit open houses if you’re thinking about buying a home in Guelph, but if you’re serious and your timing for a purchase is imminent, one of the first orders of business is to get a mortgage pre-approval.
Here’s why:
- It’s not difficult or time-consuming. Beginning the process of a pre-approval is really as simple as sitting down with a Mortgage Professional and discussing your financial situation. You’ll need to gather up some paperwork and discuss next steps.
- You’ll face your financial reality. The truth is, it can be stressful to talk about finances, including the blips along the way that almost all of us have had at some point. Still, it’s a necessary part of the process. Don’t hide from your financial reality; face it and use the opportunity to take positive steps, like efforts to boost your credit score, if needed.
- You’ll know where you stand. With a mortgage pre-approval, you’ll have a very clear picture of your house-hunting budget. This enables you to search for properties that are within your financial reach. Otherwise, you might spend a lot of time looking at homes you can’t afford and, at least from my experience, it’s not a lot of fun to be shown ‘shiny objects’ that you simply can’t afford.
- You can move quickly. With a pre-approval, you’ll have the ability to move quickly on an offer, something that is almost a necessity in the kind of Seller’s Market that, for example, we’ve seen in Guelph for quite some time. Getting a mortgage pre-approval can take several days, so it’s best to have this task comleted before you find a property that you’d like to purchase.
- Your offer will be stronger. Simply put, with financing in place, you’ll be in a strong position when you make an offer. Today, Guelph is a strong seller’s market and competitive offer scenarios are not uncommon for buyers. If you can convey to a Seller that you are a serious Buyer, pre-approved and with finances in order, your offer will be strong – particularly important if you happen to be competing with a Buyer who doesn’t yet have their finances in order.
If you’re avoiding the process of getting a mortgage pre-approval, my advice is simple: just do it. I liken it to the way I feel every spring, when I gather up my financial documents to sit down with my Accountant for tax preparation. I always feel a sense of dread. And I always leave that meeting with my taxes wrapped up and feeling glad that I faced it… yes, even when I owe!
Good luck in your Guelph home search, and feel free to contact me if you need a referral to a Guelph Mortgage Agent.
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