The short answer is no, but your real estate agent and mortgage broker strongly recommend it. Here’s why:
You will be spending a lot of time with your real estate agent because they will be there to help you pinpoint your needs, look at properties, and negotiate with the sellers. It is only normal then that they, as well as you, are sure you will be approved for your loan once you find your dream condo.
The seller will take your offer a lot more seriously if you have a pre-approved mortgage. Mortgage pre-approval will also help you with your negotiations and give you an edge over other potential buyers.
- By meeting with a mortgage broker for your pre-approval, you will learn:
- The maximum price you can afford to pay.
- The amount of money you will need for the down payment on your purchase.
- The costs associated with the transaction.
- The monthly mortgage payment.
- The benefits of secured interest rate, which will protect you from potential increases while you shopping for your property.
- The Home Buyer’s Plan (HBP)
In conclusion then, mortgage pre-approval will help you to negotiate, plan your acquisition budget and guarantee a secured interest rate on your next purchase. So even though pre-approval is not an obligation, it’s worth taking the time to get your mortgage pre-approved!
For more information regarding mortgage loans and options, please do not hesitate to contact us!
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