INDEX : Understanding
to get Pre-aproved
lenders you should familiarize yourself with some basic mortgage
concepts. You can start by reading the RealtyLink In Print
Common Mortgage Terms Defined.
of a mortgage is when your lender has reviewed all your financial
information and has determined the maximum amount of money you can
borrow. The advantages to pre-approval include:
- You know
how much you can borrow, so you don't waste time looking at properties
you can't afford.
- You don't
have to worry about rising interest rates while shopping for a
home, as usually the mortgage broker will guarantee the current
interest rate for 60 - 90 days.
- You have
an edge when you make an offer, because the seller knows you're
more likely to get a loan.
- You save
time when you apply for your loan because you've already assembled
to get Pre-approved
and financial institutions are competing for your business so it
makes sense to shop around for a mortgage. Most lenders will reduce
their posted interest rate so don't be shy about bargaining. Your
ability to bargain for a low rate and a flexible mortgage will often
depend on how much business you have with the institution. You can
contact banks and credit unions directly, or work with a mortgage
broker. A broker will help you find a lender and the best mortgage
Once you have
selected your lender, you will need to provide your financial information.
Your lender will want the following:
information such as number of dependents and marital status;
of employment, including a letter from your employer verifying
and investment information;
of your assets (i.e.- a car, other property);
on loans and other liabilities;
to do a credit check.
Once your application
is complete, you will know how much you can borrow and you will
be ready to start searching for a home. For more information, contact
your REALTOR® or your financial institution, or log onto the Canadian
Mortgage and Housing Corporation and the Canadian
Bankers Association web sites.