Mortgage Pre Approval Canada ? Get Pre Approved Before You Call Your Realtor
Mortgage Pre Approval Canada – Get Pre Approved Before You Call Your Realtor
Mortgage Pre Approval Canada – Get Pre Approved Before You Call Your Realtor
Author: Guy Rendell
Many home buyers shop for homes without understanding all the costs involved or what they can realistically afford. They can end up wasting a lot of time and money looking at homes that are not in their price range or worse, finding a great home but losing it because financing falls through. Smart home buyers know to get a mortgage pre approval before they call their realtor.
A pre approved mortgage means that you can lock in a great rate today, and have up to 120 days to shop for that dream home. Knowing exactly how much you can afford helps your realtor to narrow down the search for homes that fit in your pre approved price range. You will also be able to act quickly to secure a great home, since sellers prefer home buyers that do not need a ‘condition on financing' clause before they can seal a deal.
Your mortgage broker will shop your mortgage over many different lenders, including banks, trust companies, credit unions, financial companies and private mortgage lenders. Since a mortgage broker is not tied to any one financial institution, they can offer unbiased advice and often find deals much better than your local bank can offer.
You will need to get a copy of your credit report to clear up any mistakes or issues before you apply for a mortgage. A lender will want to see a good payment history and an ability to handle credit. Since lenders do not want to be left with a property if you default, they will also consider your debt ratios (gross debt service and total debt service) to be sure you are taking on a loan that you will be able to afford. Lenders also take into account your down payment, work history, assets and liabilities, as well as market conditions (that the home will retain its value).
