Pre-Approval Mortgages

Lenderoo is here to help get you the best mortgage pre-approval. We shop over 57 lenders to get you the best rate!

What is a mortgage pre-approval?

A mortgage pre-approval is a written statement by the lender indicating that the buyer qualifies for a mortgage based on their income and credit history. The pre-approval will include the term, interest rate, and maximum mortgage amount. A lender will usually hold your mortgage rate for 120 days.

A mortgage pre-approval helps you know how much you can afford and make an offer right away if you find a property you want to purchase. So, we highly recommended getting a mortgage pre-approval before starting your house hunt.

Mortgage pre-approval lenders

Not all lenders are the same. Find the right mortgage pre-approval lender that offers the best interest rates with conditions that meet your personal and financial situation.

Steps to getting a mortgage pre-approval

Getting a mortgage pre-approval is an essential tool to helping home buyer start their journey with confidence. See our step-by-step guide to the mortgage pre-approval process:

1. Assess your financial situation – Figure out how much home you can realistically afford based on your current financial situation. Take into account your gross annual income, total debts, and more.

2. Contact a mortgage broker Mortgage brokers can direct you towards the best lenders based on your needs and often have exclusive access to certain mortgage products.

3. Choose a lender – Interview potential lenders and review what they offer before committing. Ask how long they will hold the rate for, if they offer prepayment options, and more.

4. Compile your documents – Prove your your eligibility by providing identification documents, proof of employment, proof of financial stability, and information about financial obligations.

5. Complete the application – If you are using a broker, they will complete your application on your behalf, with your approval. Or if you are dealing directly with a lender, you will complete your application with them.

6. Get pre-approved – Receive a mortgage pre-approval letter from a lender, indicating how much you could borrow and the interest rates you will be offered.

Mortgage pre-approval frequently asked questions

Do I need to get a pre-approval?

Many first-time homebuyers decide to leave a mortgage as the last step before they purchase a property. While there is no harm in following this road, it’s not the smartest choice to make. Instead, a mortgage pre-approval is normally the best first step to homeownership.

How does my credit score affect my mortgage?

Credit scores affect your mortgage, specifically, they determine the interest rate on your mortgage. It proves that you’re trustworthy to lenders based on your past behaviour. If you have a high credit score, you will likely be offered a lower interest rate and vice versa.

What are the benefits of getting pre-approved?

By getting pre-approved, you can start your home search with confidence. Some other benefits of a mortgage pre-approval are that you know how much you can realistically afford beforehand, locking in your interest rate, and making an offer on the spot.

What other fees are there to consider?

If you’re getting a mortgage for a new property, you’ll need to pay closing costs, such as land transfer taxes, legal fees, home inspection fees, appraisal fees, etc. It’s also important to read your mortgage contract carefully as there are often penalties and fees associated with breaking it early.

Do I need to take the stress test?

Just like with any mortgage application, homebuyers need to pass the stress test to apply for a pre-approval. The stress test is only subject to federally regulated institutions, so if you want to skip it, choose a credit union or other lenders.

How long does it take?

Typically, getting a mortgage takes about a month. It may take longer during busy months or if the lender finds any financial issues when reviewing your application.

Compare mortgage plans
near you

Whether you’re applying for a mortgage pre-approval or financing for your second home, Lenderoo makes it easy to compare your options from coast to coast.

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