Possible Pitfalls of Pre-approvals

Canadian Mortgage Trends published an excellent article on the pitfalls of making an offer to buy a home without a financing condition. The main thing is to make sure that your realtor is talking to your mortgage broker. The realtor needs to understand the details of your mortgage so that they can make sure you don't place an offer on a property that will not meet your lender’s requirements. Also a realtor needs to know how high your down payment is to make sure you can weather an appraisal coming in at a lower value than what you’ll pay. You can safely put in an offer with no financing condition but use a realtor that understands how your mortgage approval will affect your purchase and connect them with your mortgage professional before you make the offer.