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Top FAQs of Mortgage Pre-approval for Buying a New Home

If you have decided to buy a new home in Canada, you'll likely need to qualify for a mortgage that supports your purchase.

But before you get into the laser-sharp approach towards buying a home with low mortgage rates, many people look to get pre-approval first.

There is no denying that it's an essential step in the Canadian mortgage the system, especially in the cities of Ontario and Brampton.

 

What is Mortgage Pre-Approval?

A mortgage pre-approval is a core mortgage prospect that helps you determine your actual budget so you can accurately calculate mortgage affordability, which allows you to budget for your home search.

With a mortgage pre-approval step, you’ll be able to lock in a mortgage rate should they increase during your home search.

 

When Should I Get Pre-Approval for a Mortgage?

It is the first process that many property buyers look out for.  As soon as you are serious about buying a new home, get a pre-approval process cleared from mortgage professionals.

It's always fine to do initial inspections beforehand, but you should get your mortgage pre-approval before you spend a lot of time looking at homes in person, or online. 

If you have a good working plan of what you are looking for and think you want to make an offer within the next few months, it makes sense to get a pre-approval accordingly.

 

Which Documents Need to be Considered for Mortgage Pre-Approval?

Mortgage pre-approval is the primary process to get a new home with the lowest mortgage rates.  For clearance on mortgage pre-approval, submit the following documents:

1. Bank account statements.

2. Pay stubs and employment details, including the name and address of your employer.

3. A list of your existing debts or obligations, such as child support payments.

4.A credit report to help mortgage lenders determine what mortgage term you qualify for.

 

Should I Get Mortgage Pre-Approval From Different Lenders?

With different mortgage lenders for your actual mortgage, it also makes sense to get pre-approval by more than one lender. 

There is no denying that different lenders have different standards and guidelines when determining mortgage eligibility. 

Getting pre-approval from multiple lenders means you'll be able to choose the offer that works best for you.

 

Does Mortgage Pre-Approval Guarantee Home Loan Approval?

You might assume that your mortgage pre-approval process checkout guarantees your mortgage clearance. It's not so! As a property buyer, you must get permission on mortgage pre-approval and mortgage pre-qualification.

Mortgage pre-approval is just a random call out process of your qualification to take out a mortgage, but it doesn't guarantee you'll ultimately get a home loan.

Your financial circumstances could change your options in understanding a home loan. Your financial things could change between when you seek pre-approval and when you apply for a mortgage.

 


Maria Delani Maria Delani 05/21/2020
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