This segment is part of a larger Virtual Live Event that we held in March 2021

The Gist:

The key element to a great real estate experience is to get your pre-approval sorted as EARLY as possible.

• This is the biggest piece of advice that Justine gives to those who are about to buy in real estate, including those who have to sell first!

• Getting this part sorted out early will make everything run more smoothly for everyone involved — yourself, your REALTOR®, and your mortgage lender/specialist.

Why to get a pre-approval early:

1. During rate bumps, those who already have a pre-approval in place get to keep their locked-in rate for up to 90-120 days, depending on the application. The average distance between submitting an offer and the possession date is about 60 days, so this gives you a month or two to shop for your new home.

2. Knowing what you can afford can save you from heartache - If you’re shopping without a pre-approval, and you fall in love with a house that it turns out you cannot afford, it can be heartbreaking.

3. Setting a budget - A lot of people get caught up in wanting a bigger and better home, but lenders have a due-diligence to approve their client for a home they can afford without going house-poor. They will look at the sale of your current home, any money from that sale you need to put towards an existing mortgage or debts, and then come up with some conditional hypothetical situations to base their pre-approvals off of. In the end, they will make recommendations based on your needs and wants.

4. In addition to just looking at the income from your home sale, Justine likes to look at your full financial situation, and any what-if situations that may come up during your time in your new home (change of income, having a baby, etc) to ensure you understand what you’re getting yourself into and are comfortable with your budget.

You will also never get a flat out “No”.

• If you end up in a situation where you cannot currently get approved, it’s not a “no”, it’s a “if not. now, here is how”

• They will give you steps to take in order to get approved, so you may have some homework!

• However, often times, people are pleasantly surprised with what they are approved for.

The key take-away: It isn’t a painful process, and should be lots of fun! This is a brand new chapter in your life, and a mortgage pre-approval is a fun first step towards it.

Ready to Get Started? 🏡

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