AKAL Mortgages

Akal Mortgages
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Lic 10845, Independently Owned & Operated
Akal Mortgages
Book An Appointment
Lic 10845, Independently Owned & Operated
Akal Mortgages
Book An Appointment
  • 238 Britannia Rd E, Mississauga, L4Z 1S6
Akal Mortgages

How to get pre-approved for a mortgage in Canada

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A mortgage pre-approval is when a traditional lender like a bank or a credit union approves you conditionally for a maximum loan amount before you decide to make a final offer to purchase the house.
It involves the lender taking a look at your finances to identify the maximum amount they can offer, including the interest rate they are willing to offer you. A successful pre-approval will give the borrower an idea of what is the maximum amount they can expect, as well as allow them to search for homes more efficiently since they are aware of how much they can now afford on the property.
Getting pre-approved is also a fantastic way to show sellers that you are a serious buyer. With the property market being so competitive, a mortgage pre-approval can give you the edge you need to secure the house of your dreams. Here at AKAL Mortgage, our team of experienced professionals can help you understand the process and explain in detail all you need to know about getting pre-approved for a mortgage.

here can one get pre-approved for a mortgage?

  • From a mortgage lender like a bank, financial institution, or even a private lender, who will underwrite and loan you money directly
  • From a mortgage broker who acts as a middle person and deals with multiple lenders, to identify the best deal. Mortgage brokers usually don’t charge a fee, since they receive a nice commission from the lender.

Things to consider in the mortgage pre-approval process:

  • Identify the best rates possible
    Do your due diligence and explore several vendors, and rates and identify a mortgage that is not only favorable to your specific needs but also realistic to your current financial goals. Consider several factors like down payment, amortization schedule, and whether you need fixed or variable interest, as they will all have a significant impact on your monthly repayments.
  • Create some room in your budget
    It is not necessary to buy a house at the upper limit of your pre-approved amount. Bear in mind, you will need to maintain a budget for closing and moving costs, including repairs and maintenance of the new house.
  • Do not impact your finances negatively
    It is never a good idea to make flamboyant purchases, or leave your current job before you get your final mortgage approved. Even if the pre-approval was successful, these major financial changes can lower the likelihood of getting your final mortgage approved.

AKAL Mortgage has the best borrowing solution for you!

Getting your mortgage pre-approved will instill confidence in you as a home buyer. Additionally, it will also give you leverage with sellers to receive more appealing offers. Moreover, by knowing the amount you can borrow and what you can afford, you can refine your property search and identify homes within that price range. It also makes the final approval process hassle-free. When you are ready to make a concrete offer on the house of your dreams, a mortgage pre-approval will give you a better chance to succeed. For more information, reach out to our team today.

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