Why a Mortgage Pre-Approval is an Important First Step
As the real estate market heats up in Burlington, Hamilton, and Oakville this spring, be prepared to see more homes for sale (inventory) but also more people looking to buy (competition). If you’re planning to purchase a new home and want to be prepared for this market the first step in the buying process should be determining your budget and obtaining a pre-approval. This will provide you with an understanding of what you can afford, qualify for and give you the confidence to make a competitive offer. I can’t stress this enough: Do this before you start house shopping to avoid the disappointment of losing out on the perfect home!
Benefits of a Mortgage Pre-Approval
- Know your budget
- Lock in your interest rate for 120 days in case they rise
- Estimate your mortgage payments and plan accordingly
- Sort out any issue’s involving credit, income, downpayment up front
- Shop for your dream home with confidence
The Mortgage Stress Test in 2020
The mortgage stress test was launched in 2018 to ensure potential home owners could afford to make mortgage payments if interest rates were to increase or if their income decreased. At the time, the policy made sense. However, we’ve since learned that it’s causing future home owners to qualify for their mortgage at a higher interest rate despite receiving lower rates, which decreases mortgage affordability. This means that house shoppers are finding it more challenging to enter the real estate market then it should be for them. Prime Minister Justin Trudeau has requested his federal Finance Minister to review stress test qualifications and many are anticipating it to be lowered in 2020.
You’re in Good Hands With HW Advantage
Prepare yourself to shop in the competitive Burlington, Hamilton, and Oakville market by partnering with the industry leading HW Advantage team to get your pre-approval started. Preparation will pay off in the end and we make the no-obligation application process quick and easy.
- Personal, Local Service (Hamilton, Burlington, Oakville, Mississauga, and surrounding areas)
- Access to the Big Banks, Credit Unions, Mono-line Lenders, and Private Lenders – all in one place!
- Preferred Lender Rates
- Private Lending
- Expert advice to guide you through the entire process
- Connections to preferred Real Estate Lawyers, Realtor’s, Appraiser’s, Home Inspectors
Take the smart first step in the home buying process and turn to HW Advantage for personal and boutique mortgage advice.
Want to get started? Fill in our pre-approval form HERE or contact us by filling out the form below or by calling us at 905-541-6961.