Have you made the decision to purchase a new home? If so, one of the first steps you will want to take is to contact your mortgage broker in order to get a mortgage Pre-Approval.
What is a mortgage pre-approval?
Some people use the terms pre-approval and pre-qualification interchangeably, but they are not quite the same thing. A mortgage pre-qualification is really just a best guess as to how much of a home loan that you could qualify for, while a mortgage pre-approval is much more rigorous.
With a mortgage pre-approval, you will actually need to collect a number of financial documents (T4s, paystubs, Notice of Assessment, etc.) so that the lender can see what your income, assets, and liabilities are.
Once the lender has reviewed your information, they will determine whether they are willing to pre-approve you for a mortgage, and at what amount and interest rate.
Why is it important to get a mortgage pre-approval?
Getting a mortgage pre-approval is important for a number of reasons. For starters, it lets you know how much of a home you can actually afford. This means that you won’t be wasting time looking at homes that are out of your price range.
Additionally, if you want to work with a real estate agent (which you should!), you will likely need to have a mortgage pre-approval first in order to demonstrate to them that you are a serious buyer.
And finally, if you have a mortgage pre-approval, you will have a much better chance that a seller will accept your offer. Sellers want to know that prospective buyers already have financing in place – that way they can be more certain that the deal is not going to fall through later.
How can I get a mortgage pre-approval?
The best way to get a mortgage pre-approval is to work with your mortgage broker. Mortgage brokers have strong networks consisting of dozens of lenders – which means they can help to find you the best offer on a mortgage pre-approval.
Contact AKAL Mortgages today
If you would like to get started on the process of getting a mortgage pre-approval, we can help. Contact us today to speak with one of our brokers.
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