The importance of getting pre-approved for a mortgage

By Cody Battershill
September 18, 2019

One of the most important steps in buying a home is getting a mortgage pre-approval.

Whether you’re an experienced home buyer or are looking to purchase your first property, pre-approval should be one of the first steps you take. Why is that?

When browsing properties for sale, you’ll want to feel comfortable about the price range you’re looking in and allow yourself to move quickly on a home.

A pre-approval shows you the maximum amount you can spend, and more importantly, will help you feel comfortable with your monthly payments beforehand if you do choose to buy.

Browse for the best rates

Do your due diligence and shop around for the best mortgage rate. Don’t just go to your current bank and expect to get the best rate, either.

An option is to use a mortgage broker when buying a home – many people do. This broker will negotiate on your behalf with various lenders and do their best to get you the best rate possible.

Collect your documents

If you’ve chosen to use a mortgage broker, they’ll give you a list of documents necessary to assess your financial capacity. Some of those will include:

  • Government-issued identification
  • Bank account and investment statements
  • Proof of any assets: i.e. car, boat, house
  • Proof of income: i.e. pay stubs, a letter from your employer, notice of assessment
  • Current debt: i.e. student loans, lines of credit

Having these ready to go always helps speed up the pre-approval process.

Do your due diligence

Once you’ve submitted your documentation, try to make sure you’re available to answer any questions your mortgage broker may have. That means being available via email and phone during most parts of the day. Assuming you get approved, you’ll also want to read the fine print of the pre-approval document. It will outline the amount you’ve been approved for, along with the interest rate and loan term of that mortgage. Making sure that you're comfortable with the details of your mortgage is a must! Don’t overlook any details whatsoever.

Ask a realtor

Aren’t sure about which mortgage broker to use? Ask an experienced realtor, they will be able to refer you to an experienced broker who will have your best interests at heart. Wishing you all the best in your next real estate transaction!

About Cody Battershill

Cody Battershill is the founder of Calgaryism and a top producing Realtor® at RE/MAX House of Real Estate. Born and raised in Calgary, Cody has a passion for helping his clients accomplish their real estate goals and loves to show off the best that Calgary has to offer! He can be reached at 403.370.4008, on Twitter @Calgaryism and Calgaryism.ca

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