Can You Buy Pre-Construction Condo without Pre-Approval Mortgate
It is imperative to have preapproval mortgage before you buy preconstruction Toronto new condos. This article will give you better insights to ensure that your mortgage is preapproved before you strike a deal to buy a new condominium.
Understanding your mortgage
It does not matter whether you are purchasing preconstruction Toronto new condos or old ones, which is ready for sale. Without a mortgage, it will be difficult for you to secure it. In most of the cases when you will visit a property dealer or a builder, getting a preconstruction mortgage approval will show you as the potential homebuyer. Builders, real estate agents who are working for commission will take you seriously. Getting mortgage approval will show your seriousness in striking a deal. This will also show your financial position and it will prove that they will easily get their money.
To get mortgage preapproval is an important step before purchasing a preconstruction condo, but even then most of the people are unaware of this. They think that getting an approval is a complicated process and their builder will assist them.
Understanding the mortgage process
The process of getting mortgage preapproval starts from visiting a mortgage. It is obvious that the lender for preconstruction project will check your current assets, current depth and your income level. It is important to provide the following information to your mortgage lender.
- You need to give your identity details
- You have to give your employment and salary details
- You have to make your lender understand that you are able to pay down payment and other expenditures involved in the process
- You need to give details about your assets
- If you have earlier borrowed money from a financial institution or a bank, give its details. What are the financial obligations you have? It may be paying monthly instalments, rents or other expenditures.
After assessing, they will tell you the maximum amount you can get for mortgage. There will also tell you about the mortgage repayments and the interest rate you are supposed to pay. At this point of time, you need to remember that the preconstruction mortgage approval has a short life span of 120 days only.
This is a well-known fact that purchasing a preconstruction condominium is the hardest part when you are doing it for the first time. There is no need to worry because with a little bit of preparation you can simplify the process for you. Remember that the down payments on preconstruction developments are often higher in comparison of a resale property. Some developers may ask you to pay up to 25% of the total cost of the property. You are supposed to keep this in mind before buying a preconstruction condominium.