Pre Construction Requirements
When it comes to buying, or even reserving a unit, there are some consistent requirements to be prepared for. Having these ready to go can be the difference in getting the unit you want – so make sure you take the time to get everything in place!
And while developers can be unique in some of the specifics, this list will steer you in the right direction.
1. A Mortgage Letter/Pre-Approval
It’s always a good idea to begin your pre construction search with a solid idea as to what you qualify for.
And even though in most cases projects will be completed a few years from now, a mortgage broker or financial planner can help you take that into consideration as you prepare for when you will actually take out a mortgage.
Many projects will require you to have, as a minimum, a letter of intent from a mortgage broker or a lender. This simply lets the developer know you will not likely run into any issues obtaining financing in the future.
Some developers will ask for a pre-approval, which is a little more formal – so long as you qualify today for the project that you will take possession of in the future, then there is no concern. But this is definitely something to keep in mind if you were planning on an increase in salary or other factor in your budget timeline.
2. Your Unit Choice(s)
Pre construction is fast-paced, even for real estate. Which means, it’s important to review the project marketing material, floor plans, and pricing thoroughly.
When you’re reserving your unit, you’re going to want to have a floor plan in mind, as well as the height in the building (if it’s a condo building). Letting your representative know these upfront allows for effective communication with the developer.
And it drastically increases your chance of getting a unit: many times, as clients take their time to decide on what exact unit is their top choice, more and more units sell, leaving them with even less options!
It’s a good idea to have your top 3 choices in mind – some fall back options that would still have you owning and living in an incredible building in a quality unit.
3. Your ID
Every developer is going to ask for a piece of ID prior to submitting a reservation request. This can be any government issued ID.
But, it can’t be expired.
4. Proof Of Your Deposit
Developers will vary on this, but most will require you to show that you have a deposit cheque on hand and are ready to go if your unit is available for you.
Many times, you can just take a photo of the deposit cheque. And, since many people don’t have cheques, developers will take a bank draft or even a wire transfer, but this will depend the developer – make sure you ask us depending on what you’re looking for!
5. Parking/Storage Locker
You will have to let the developer know if you want parking and/or a storage locker if they are not included. This price will be added to your final purchase price and will affect the total downpayment amount you would have to pay (as a percentage of the purchase price).
That covers the bulk of what most developers will be requiring from you to start the purchase process.
Additionally, depending on the project, developers will ask that you indicate what upgrades or design selection (if any) that you want. This is very project dependent though, and your representative will walk you through these options!
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