First things first: always get pre-approved before you start hunting for your next home. This is an important step that will save you time and make the process much smoother than if you didn’t.
Getting a pre-approval determines what you can afford, allows you to create your budget, focuses and narrows your home search, and locks in your mortgage rate while you search for 90 or more days. Yes, this means you are protected against interest rate hikes while you shop.
Other perks of a pre-approval are discovering the maximum amount you can spend on a home, what your maximum monthly payment would be, and what your mortgage rate will be for the first term.
Applying is free, and never commits you to a single lender. Having a pre-approval in hand also signals your Realtor that you are serious about buying, and greatly improves your chances of winning should you get into a multiple offer situation. And don’t worry if interest rates fall – your lender will honour the lower rate.
Make sure you take the time to meet with your mortgage broker or lender to get your pre-approval before you start your next home search. They will ask you a series of questions and ask you to provide supporting documentation.
If you don’t know a mortgage broker, don’t worry, we have a list of brokers that we not only recommend but work with regularly. Give us a call and we would be glad to make a recommendation! 416-919-8521