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Originally Posted by spring
Hi everyone. I want to know what is the requirement for presale. Is it just like buying a property with mortgage or you just pay the initial cost and then wait for it to be ready and then discuss the mortgage. Anyone has experience?
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You don't need the mortgage until its ready, but you may want to get one anyway for 2 reasons:
-To find out what you qualify for anyway. If you can't qualify later, you'll still be in a firm contract & the developer will expect you to figure it out. This will also help you break down your expected monthly payments and make sure you're budgeting well.
-To hold a rate. Most mortgage rates are only held for 60-90 days but Presales will have an on site relationship with a broker/bank who will hold rates for even 2-3 years. This way if rates go up a year from now, you've still held something in place as a just in case rate.