A pre-approval is one of the most important steps in the home purchase process. And is a step that should be taken promptly once you begin to shop for homes; this cannot be stressed enough. It not only helps you understand what you can afford but it helps keep you from falling in love with homes that may cost you more each month than you’re wanting to spend.
With a pre-approval, you will see what price range you can afford, what the monthly payments will look like and you will also secure the interest rate for the first term. You can secure an interest rate hold for 90-120 days while you shop, allowing you to focus on your home search without the stress of rising rates. Should rates fall during this period the lender will honour the lower rates.Many factors go into this pre-approval equation such as your current debt, payments, expenses & your total income.
Once you have a pre-approval in place, it is strongly advised not to add to your debt obligations prior to purchasing your home and also to notify your lender immediately if you are considering adding any additional debt.
It is also important to understand that what you are offered by one bank or broker may be completely different than what another might have on offer; we can help you navigate this process if it is unfamiliar territory for you.
If you would like a referral to a mortgage professional that we trust please let us know. Once you have consulted with a mortgage professional we can help with advice on next steps!