Getting a Mortgage Pre-Approval
When you decide to start looing to buy a new home, the FIRST thing you should do is get pre-approved — even before you start your search — is to get pre-approved for your mortgage.
Three Reason Why Pre-Approval is Important:
1. YOU KNOW WHAT YOU CAN AFFORD
By getting pre-approved for a mortgage, you’ll have a better idea how much you can borrow, how much home you can afford and what your monthly mortgage payments will be. Without pre-approval, you may be wasting time looking at properties that are far from reach causing frustration and deterrence.
2. YOU’RE INTEREST RATE IS GUARANTEED
If you choose a fixed interest rate mortgage, you are guaranteed that rate during the 90-day pre-approval period, so you are protected if interest rates should rise.
3. BUYING WITH CONFIDENCE
When it comes time to make an offer, because you know you’ve been pre-approved for a mortgage, you’ll be able to act more quickly and with more confidence.
How Mortgage Pre-Approval Works
Your best option (if you’re looking for the best deal), is to contact a Mortgage Agent. A Mortgage Agent is similar to a Insurance Agent, they shop around through all the Mortgage Providers to secure a Mortgages that best suits your individual needs and at the best rate, often lower than the posted rates!
When arranging for pre-approval you will be requested to complete a mortgage application as well as your consent to do a credit check. You’ll also be asked to provide the following:
- Name of your employer, length of employment, and current salary
- Annual salary or wages for the household
- If you are self-employed, earnings for the past two years
- Annual earnings from commissions, bonuses or tips
- Annual interest and investment income
- Child support or alimony received this year and last
- List of assets (bank accounts, RRSPs and other investments; major personal assets, such as jewellery, car, collections)
- Details of liabilities (amounts owing on credit card balances, student loans, car loans, personal lines of credit, other debts, or monthly payment obligations)
The Lisa Fayle Team works very closely with a Prime Rate Services, a Mortgage Agent local to the area. By visiting their website, you will find valuable information, calculators and an easy to use online mortgage application, or simply Contact Us, as we’d be happy to set up any appointments on your behalf.