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.