| Getting
Pre-Approved for a Mortgage For
most of us considering buying a home, a mortgage will play a large role in the
financing of this purchase. Pre-approval of a mortgage is simply having your lender
review all of your financial information and determining the maximum amount of
money you can borrow. Why
Get Pre-Approved? - You
know exactly how much you can borrow, so you can tailor your home search to properties
you can realistically afford.
- The
Lender will generally guarantee their interest rate to you for a period of 60-90
days - some even up to 120 days. This way, if rates increase, you are able to
take advantage of your pre-approved lower rate.
- Pre-approval
gives you a competitive advantage when making an offer on a home because the seller
knows that you have qualified for a loan. In a situation where there are multiple
offers this is imperative.
- Once
you have made an offer on a property and are ready to apply for your mortgage
loan, you can save time because much of the paperwork has already been completed.
What
Information Will be Required? - Personal
information such as marital status and number of dependents.
- Employment
details, including T4 assessment and letter from employer verifying your salary.
- Investment
and banking information (i.e. - RRSP, Mutual Funds, Stocks).
- Details
of your assets (i.e.- a car, boat, any other property)
- Information
on loans and other liabilities (i.e. lines of credit, car payments, support payments)
- Permission
to do a Credit Check.
The
mortgage market is currently very competitive. Many Banks, Credit Unions, and
Mortgage Brokers will reduce their posted interest rates in order to gain your
business. A small discount in your interest rate can make a huge difference in
the long-term interest amount you will be paying, so shop around, and don't be
shy to ask for their best rate. You Realtor can help you in finding the right
lender. There
are some great Websites offering information about mortgages: Tricks
& Tips for Successful Home Buying Let
Me Help Find the Right House for You...an
easy to fill out form highlighting your "Dream Home". Ten
Steps to Buying Your Home...find
out the most important steps in planning the purchase of your first home. Buying
Your Home with Just 5% Down...see if you qualify. Saving
Money on Your Mortgage...helpful suggestions to reduce the amount of interest
you pay. Closing
Costs...don't forget about closing costs when you are purchasing your
home. Avoid
Paying the Property Transfer Tax...you might be eligible for an exemption
of up to $3,500. | 
