Homeownership is a long-held dream for many Canadians. As with all new experiences -there's uncertainty and you may second guess yourself once or twice before actually buying anything! You'll be interviewing real estate agents; looking at homes and thinking about bidding wars (and worries of maybe even losing). Thankfully this process will become less stressful when it comes down to qualifying because that’s where having a "pre-approval" comes into play! A Pre-approval gives YOU more confidence in YOUR power of purchase - by knowing how much you can borrow without too much risk involved beforehand.
As you may already know, there’s a whole lot more to buying a home than just finding the perfect house. The first thing you should do before even looking at homes is apply for your mortgage pre-approval! This is when a mortgage expert looks into your employment history, credit score and current expenses and balances all the factors out to determine how much you qualify to borrow.
Here are a few of the items you should expect to present when applying for a mortgage pre-approval with Mission35:
Two pieces of ID
Two years of tax documents and proof of income tax paid
Proof of current employment by job letter and paystubs
Currently owned property mortgage statements and tax notices
Bank statements to show proof of down payment and closing costs
In order to avoid any issues with your mortgage pre-approval, make sure that you stay in touch by phone and email.
When you're pre-approved for a loan, your mortgage expert will send through an approval document that outlines interest rates and other key details. You should read this carefully to make sure it's something in line with what suits both yourself as well as any family members who might be co-signers on the deal!
The mortgage rate is an important topic, but it's never only about rates. You want the best deal for your home, so do some research on what other banks offer before going to one specific institution with an expected great rate! The best part about working with a Mortgage Agent is that they can look at 50 different rates from 50 different lenders in one application. Once approved, we'll present a few lender scenarios with different cost break downs per month so you can see the differences.
You can also save money in interest payments over time by making extra annual principal payments on your mortgage. Try our handy calculator here: [Link]. It's always important to discuss different lenders' policies for pre-payment privileges with your mortgage expert.
A mortgage pre-approval is key in the start in any home buying journey. The best part? You can find out how much you are pre-approved to buy for at any time! If you keep your employment the same, or better yet, get a raise in pay - and restrain from signing a new car lease - your pre-approval may still be valid many months from now! This is another fantastic reason why keeping in touch with your mortgage expert is essential for breaking into the real estate market.