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With interest rates on the rise and many housing policy changes over the past year, it's more important than ever for first-time home buyers to have their mortgage pre-approval in hand when beginning the search for a new home.

There are a few reasons why getting pre-approved is so important as you begin the journey towards home ownership. For one, it takes the guesswork out of house hunting! There's no sense in viewing and falling in love with a home you can't afford. You can streamline the process and keep only true contenders in the running when you are aware how much you can afford to spend on your new home. Another reason to get pre-approved is that it shows that you're a serious buyer. Both real estate sales persons and sellers will recognize that you have done your homework and are truly ready to buy. In fact, having a pre-approval in hand may give you negotiating power over another buyer who has not been pre-approved.

Getting pre-approved will also help things move along quicker and smoother during a negotiation. It will allow you to act fast when placing an offer on a home. By getting pre-approved you have started the application process for the mortgage. They will provide you with a pre-approval letter, though it is important to remember that this is not a guarantee of financing. Most realtors will still recommend that you include a condition on financing in any offers you submit.

What is a mortgage commitment letter? A little more in-depth than a mortgage pre-approval, a mortgage loan commitment letter means that a full mortgage application was taken, the loan has passed through underwriting and the borrower was approved. A commitment letter is a document that lets everyone in the real estate transaction (real estate sales persons, sellers, etc.) know that the lender is prepared to take on a loan that will cover the cost of a home.

The simple step of getting pre-approved will make your home buying experience run smoother.


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Testimonials

  On behalf of Jennifer and I, we would like to thank you for all of the hard work you put into finding us our first home together. It is very reassuring to find someone who really takes the time to make sure that every little thing is done right. Jennifer and I spent months looking for a place to live. We both had very specific requests which didn't always make it easy for you.

By taking the time to ask us the right questions you were able to find our dream house. I must say that you went above and beyond taking a large amount of your time showing us different properties. As I'm sure that you would agree, I am very particular and I like to see every house that is out there before I make a decision. I have worked with REALTORS in the past that were only concerned about "closing the deal" and earning their commission. I never got that feeling from you. I always believed that you had our best interests at heart. I would not hesitate to call you in the future if we are looking for a larger property or investment property. Your knowledge of the Hamilton-Burlington market is quite extensive.

Jen and I are extremely happy and would recommend your services to anyone interested in purchasing a home or investment property.

Adam Berti, Hamilton, ON

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