Getting a pre-approved for a mortgage before you start home shopping might take a bit of work, but it’s relatively easy. You just have to call a Mortgage Expert, and they will sit down with you to explain the entire process, and get the required information and documentation, in order to provide you with a clear picture on what numbers you have to work with. As a Mortgage Expert, when I work with my clients, I let them know what they can qualify for based on their application, credit report and supporting documentation.

Together, you and your Mortgage Expert can determine what you can realistically afford to pay for a home, remembering that there are a myriad of costs that you probably haven’t even considered. Factor in the closing costs, for example; the lender requires you to have 1.5 per cent of the purchase price for closing costs. You don’t need to spend that money necessarily, but you do need to have the funds available at completion time. Some of these costs include legal costs, the property transfer tax (PTT), property tax adjustments, interest adjustment, strata fees adjustments (if applicable), title insurance, appraisal, inspection, and a few other things.

When purchasing your primary residence, it can be an emotional and time-consuming process, since you want to make sure you find the right home to suit your needs. Knowing what you qualify for is critical when you start working with your real estate agent, as it signals to the agent that you are a well-qualified buyer who is serious about purchasing a home. In fact, some agents won’t even show properties to buyers who haven’t talked to a Mortgage Expert or bank.

It is important to remember that getting pre-approved doesn’t mean that your mortgage has been approved. The final approval is given once you have an accepted offer, your application has been submitted to the lender, and the lender has received and approved all the outstanding financing conditions outlined in a commitment letter. Talk to a Mortgage Expert to find out how much you qualify for and get you started on the exciting road to homeownership!