Importance of a Pre-Approval

 

One of the first things you should do when you decide to buy a home, even before you start your search, is talk to a Mortgage Broker. Here’s why:

• With a pre-approved mortgage, you’ll have a better idea how much you can borrow, how much home you can afford and what your monthly payments will be.

• Mortgage Broker’s will lead you step by step through the purchasing process and familiarize you with the rules and costs associated to buying a home.

• If you choose a fixed interest rate, you are guaranteed that rate to be held for up to 120-days, so you are protected if interest rates should rise.

• When it comes time to make an offer, you’ll be able to act more quickly.

When you meet with your Mortgage Broker you will need to provide the following documentation:     

 

• A job letter from your current employer stating your wage, position and start date & a current pay stub. If you work over time or are self employed bring in the last 2 years of your income tax and notice of assessments.

• Proof of your down payment and legal fees (3 months worth of bank statements)

• Information on any other real estate you may own. (mortgage statement, property tax notice and rental agreement)

Every situation and mortgage is different so other documentation may need to be provided but that will be discussed in your pre-approval meeting. This will help prepare you for when you find a house and make the process stress free.