Posted: 21 Apr '17

How To Get A Pre Approved Mortgage

A home is a massive purchase – with so many things to consider, buying a new property can be a stressful experience. Getting pre-approved for a mortgage, a step that is too often overlooked, is a crucial move in a smooth home buying experience. The process is simple and will allow you to set attainable goals while shopping for your new home, as it outlines the maximum amount you can afford to spend. A licensed mortgage broker from Dominion Lending in Edmonton can start the pre-approval process for you, getting you one step closer to owning your next home.

What is Involved?

A mortgage pre-approval will provide you with useful information to aid in your home search. Our mortgage brokers will inform you of the maximum loan you qualify for, so you know what amount you can realistically spend on your new home. They will also let you know what to expect in terms of mortgage payments and rates based on the cost of the house you are looking to purchase and some individual factors. These include things like your current credit score, how much money you can allocate for a down payment, any existing loans, your current income, and other assets.

Guaranteed Rate Holds

With a pre-approval, the interest rate you negotiate at the beginning of your house hunt is guaranteed not to rise for approximately 60-120 days, so you do not have to worry about it changing for the duration of your search. This protects you from unpredictable fluctuations of the market. Alternatively, if the interest rate lowers by the time you do find your new home, you can go with that rate. Either way, you are protected with a pre-approved mortgage.

Increases Buying Power

A mortgage pre-approval will give you a leg up over competing buyers who are not pre-approved. Having a mortgage pre-approval indicates to the seller that you are serious about the purchase and are truly able to afford it. This provides you with an advantage to negotiate the best deal possible from the home seller.

If you are considering purchasing a new home, contact us to speak with one of our mortgage professionals at Dominion Lending in Edmonton. We can give you all the information you need about getting pre-approved, giving you the confidence and peace of mind that you will be able to afford your new home.

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