Residential Mortgage Pre-Approvals
Buying a home is one of the biggest financial decisions you will ever make – and it is a decision that will affect your income, finances, and lifestyle for many years to come.
The first step to achieving your homeownership dreams is to find the ideal home that matches your needs in every way. Then, you must have a customized mortgage solution that addresses and meets your homeownership needs.
At Mortgage Intelligence, Natasha Bridgmohan and her team of brokers deliver a comprehensive mortgage service. We follow a step-by-step consultative approach that ensures you get the mortgage that is right for you – today and in the future. Our personalized mortgage consultation begins with advising you on how to apply for a mortgage pre-approval. There is much more to this than just filling out a stack of forms and submitting them to a mortgage lender!
What is a Mortgage Pre-Approval?
A pre-approval determines the mortgage amount for which you have qualified. It will help to establish your maximum purchase price when looking for a property. The lender may use your credit report, current income, revenue, and monthly overhead in order to determine your pre-approval amount. A mortgage pre-approval is, in essence, a *conditional approval from the lender. As your mortgage brokerage, we can arrange a pre-approval for you after completing a comprehensive review of your financial situation.
What factors will affect your pre-approval?
- Changing employment or other factors that will reduce or affect your income. Examples include a probationary period at work or if you are currently on, or plan to be on, maternity or parental leave.
- Applying for new credit cards or loans
- Entering into a “don’t pay for a year” agreement
- Guaranteeing or co-signing a loan or mortgage for someone else
- Using any of your down payment money for other purposes
- Allowing your investments to slip below the amount you will need to maintain your current financial position
Why is it important to get a mortgage pre-approval before you begin your property search?
A mortgage pre-approval will help determine your maximum purchase price when looking for a property. It will:
- Save you time and reduce uncertainty as you will be able to inform your Realtor® of exactly what price range you can afford
- Give you added confidence when making an offer and improve your chances of success when making a bid – you already have a written confirmation/pre-approval certificate stating how much you can borrow
- Guarantee a particular mortgage rate, for a fixed period of time (e.g. 90 to 120 days) – a mortgage pre-approval provides a ‘locked-in’ rate to protect against any increases in interest rates while you are house-hunting
Tip: Talk to our expert mortgage brokers regarding your mortgage pre-approval. We may be able to obtain a longer ‘rate hold’ or, if the rate drops, change your pre-approval to the new rate.
What information do you need for a pre-approval?
When applying for a pre-approval, lenders require proof of:
Identification – Including full legal name, date of birth, two forms of identification, history of residence and employment.
Income, assets and expenditure – This includes current income, revenue, and overheads, and could/will require a letter from your employer, bank account and investment statements, credit card statements, a breakdown of current monthly expenses and debt payments
Tip: At Mortgage Intelligence, we provide expert advice and tips on improving your credit rating should you not qualify for a pre-approved mortgage directly from a lender.
To obtain more information about applying for and qualifying for a pre-approval, contact Natasha and her team of mortgage brokers today.
Call us toll-free at 1-866-553-7467 ext 221 or 905-851-8871 ext 221. You can also complete our online mortgage application form.