As your local mortgage broker in Kamloops, I feel it is essential for those entering and already in the real estate market to know the importance of a pre-approval. A mortgage pre-approval can be a necessary part of your pathway to building wealth, giving you a real-world picture of your options: your opportunities and limitations. Check out this article from CMHC – “Are You Financially Ready to Buy?”
A pre-approval will tell you how much you qualify for (you may be pleasantly surprised) and your mortgage payments. You’ll get a mortgage rate that will be held for a specific period, typically anywhere from 90-120 days.
A pre-approval can improve timing on the lender’s side. As the lender has already reviewed you, the purchaser, the review process comes down to the property. When the real estate market picks up, this can help relieve stress and make the process go smoothly.
You’ll shop with a full wallet if you purchase a new home! You’ll know exactly what you can afford. You want to avoid reaching too far financially for a house you’ve fallen in love with, but you may also discover that you’re ready for the home of your dreams and didn’t know it. A mortgage pre-approval tells you that.
In other words, a mortgage pre-approval is always a good idea. Remember, of course, that a pre-approval isn’t a mortgage approval. Ensure you have a financing condition when purchasing because your property needs to be assessed by your lender during the mortgage approval process. You’ll need to provide the necessary information, such as the offer to purchase, MLS listing, and any other documents required by the lender so they can assess the property.
Additionally, any planned financing might fall through if your circumstances change. So be careful with changing jobs, adding debt or missing payments, co-signing another loan, or using your down payment money. You want to keep your financial situation squeaky clean while preparing to finance.
Wherever you are in your mortgage journey, get in touch, and I’ll show you all the possibilities.
Is your mortgage coming up for renewal in the next few months? If so, you can expect to hear from your lender. Remember that when your lender contacts you, that is your signal to get advice. Staying with your lender might be your best option, but you should always use renewal time to look around and ensure you have the best deal.
Are you ready to get pre-approved? Is your mortgage coming due for renewal in the next six months? Let’s talk today!