Before you start viewing homes with a realtor, it’s crucial to know what you can afford. While simple calculations can be done to determine what price range you should be shopping in, most realtors and will encourage you get pre-approved for a mortgage loan by a one of our licensed mortgage brokers in Edmonton.
Whether you’ve saved for your down payment or not, if you’re seriously considering buying a home in the near future, then it’s time to get pre-approved.
You should get pre-approved even before you meet with a realtor and start looking at homes. This will enable you to set realistic expectations in terms of affordability so you don’t get caught up looking at houses that you love but can’t afford.
When you are pre-approved for a mortgage, you’re beginning the application process for the mortgage. To provide you with a pre-approval, a lender reviews your income, the source of your down payment, your assets and liabilities, and inspects your credit report to determine your credit-worthiness.
In addition, getting pre-approved will allow you to act quickly once you do find your perfect home, and may give you and your realtor more confidence when placing an offer.
Many pre-approvals include “rate holds,” meaning you can look for a home with confidence knowing that your interest rate won’t go higher than the rate offered at pre-approval. Under circumstances where the rate drops between the time of pre-approval and the purchase of your home, you will get the lower mortgage rate. Typical rate holds are 90 to 120 days. Call the best team of mortgage brokers in Edmonton today to start your pre-approval process.