There are many benefits to seeking pre-approval before beginning to search for your new home! Pre-approval is a preliminary review of your financial situation to determine:
A) how much can you afford to spend
B) your risk level from the lender's perspective (are you qualified to borrow money and how much). Lenders will review your credit score, debt level, current employment status, additional income streams etc.
Be prepared that this will require you to provide documentation such as T4's and pay stubs.
Pre-approval is not the same as an approval - be sure to check with your mortgage representative.In most cases, it is advisable to include a financing condition in your offer - our REALTORS® will discuss the advisability of this with you.
BENEFITS OF A PRE-APPROVED MORTGAGE:
- Knowing how much you can afford reducing the risk of making an offer for which you cannot get financing.
- It is helpful to know your future mortgage payment amounts to allow for budgeting.
- Some lenders allow you to lock in an interest rate - giving you a period of time to find a home with a known rate.
- Being pre-approved shows that you are a serious buyer and may give more leverage when making an offer, especially when there are competing offers.
- Pre-approvals are generally provided free and there is no obligation to use it.
Our REALTORS® are always happy to discuss the benefits of pre-approved mortgages with you and can provide a list of experienced mortgage brokers should you require it.
Give us a call, text or WhatsApp at 905.220.1848 to talk to one of our professional REALTORS®.
We hope you'll check out our FREE BUYER PACKAGE for more important tips on buying a home.