Mortgage Pre-Approval
What is a Pre-Approval?
A mortgage pre-approval is the first step in the home-buying process, offering prospective buyers a clear understanding of how much they can afford.
It involves a detailed review of your financial situation, including income, credit score, and debt levels, to determine the loan amount you qualify for.
With a pre-approval, you'll receive a conditional commitment from a lender, which can give you an advantage when negotiating with sellers.
Additionally, it locks in an interest rate, ensuring you're protected against rate increases while you shop for a home.
Why is it so Important?
Purchasing a home is one of the most important events of a person’s life. Whether you’re buying your first home, a second home, or a rental property, we’re here to help on that journey. With access to over 50+ lenders, we will be able to find the right product suitable to your needs.
Remember you are unique and so is your financial situation. There is no one size fits all mortgage product or rate that is best for everyone. In order to develop the best financial plan tailored to you, we need to understand you.
Fill out the free consultation form below and start your financial journey with us today!
Pre-Approval Misconceptions
A common misconception is that the only important factors when buying a home are price, down payment, and interest rate. This is not accurate!
This is a good starting point to consider your estimated monthly payments. Using the calculator on this page will help you understand how these three factors play a role in determining monthly payments.
How does a pre-qualification differ from a pre-approval?
Simply put, pre-qualification is the less stringent, starting step that doesn’t require income or credit verification. The idea behind pre-qualification is to give the buyer a sense of whether or not they can afford roughly calculated mortgage payments with their current debt load.
Additional Factors
In reality there are numerous other important factors that need to be considered including, but not limited to:
Is the mortgage going to be CMHC insured?
Are other debts going to be consolidated into this mortgage?
Is there a first-time home buyer plan contribution to the purchase?
How much are property taxes and are they included in the payment?
Will my current credit situation allow me to get the rate I want?
The only way to truly get an accurate assessment of a pre-approval is to take all of these factors into consideration. Remember, you are unique and so is your life situation.
We are here to provide a tailored financial solution that is unique to you!
