Bank Pre-approvals. Is a Pre-approval Mandatory?

Dated: July 24 2023

Views: 35

Do I really need a bank Preapproval?

You have surely heard about a bank pre-approval. Or if you haven't you most likely will if you are buying a home.

Whether it is in Edmonton or anywhere else in Canada, you will find many people will expect that you have one.

In the above video Derek goes over his opinion of bank pre-approvals, the pros and cons and if it is really mandatory to have a pre-approval before you can buy a property? Put an offer in on a property? Or simply needed just to work with a real estate agent?

Given Derek's history with vendor-take-back mortgages and private mortgages, part of him feels that real estate is about pushing the limits and finding a way to make financing happen.  In the past when he was asked if he was pre-approved, it was insulting.  Partly because of the way it was asked to him and the other part because of frustration from working with banks.

For seasoned buyers finding a way to make financing work may be a normal way of life and business (even then, KNOWING your finances is important).

Whether you need to be pre-approved or not, really comes down to how well you know your finances.  Real estate agents should let buyers know why a pre-approval is in the buyer's best interest. I have heard of many real estate agents that wont work with a buyer unless they get pre-approved, and with tougher bank regulations this will likely grow.

For first time home buyers, I have this picture of a couple about to be married, excited to buy a home, finally finding the ideal home and not being able to get financing, having their dreams crushed.

If you are looking to buy a property or investment properties, contact Derek to go through a full plan to support your needs.

To get started, click here to set up your own detailed search: https://rem.ax/3JdOk9g

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Derek Keet

Think RE/MAX Elite, think Derek Keet. With over 20 years of personal experience in residential, commercial, and rural transactions, Derek is an accomplished international business leader who brings ....

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