Royal LePage Kelowna Real Estate Report for May 2022
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Open in new tab Myth-Busting Mortgage Pre-Qualification
4 myths that could hold you back in the home shopping phase
With the market still on sizzle in the Okanagan, it is wise to pre-qualify for your mortgage before you start seriously looking for a home. Pre-qualifying can be a very empowering process that puts you in the drivers seat. However, the process can be confusing without some practical guidance to help dispel some common myths:
1. Lead balloon
Some people worry that talking about money will leach the joy out of the homebuying process. While financial conversations can be stressful, knowing your boundaries can add excitement because it makes you dreams more tangible. It keeps you from falling in love with a home outside your grasp and helps you to take concrete steps towards your new future.
2. Money in the bank
Pre-qualifying is not to be confused with getting pre-approval for a loan. They are not the same at all. Pre-qualifying gives you a clearer picture of what you can afford so you can shop within your range - it does not carry the commitment of a loan.
3. Too much paperwork
Another myth is that pre-qualifying means having to produce paperwork such as tax returns, pay stubs, etc. prematurely. Yet gathering these documents at the onset of the process will alleviate stress later when it is crunch time. The last thing you want are unnecessary surprises when you are in the middle of trying to close the sale.
4. Married to the wrong lender
What if you don't want to stick with the lender who pre-qualified you? There is no obligation to commit to a lender just because you did your pre-qualification process with them. If you find a more competitive rate elsewhere that they are not prepared to match, you are free to take the documents you have gathered and pursue the best deal for you.
Related:
Indoor and Outdoor Home Maintenance: Getting Your Home Summer Ready
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