The first step in your search for your dream home or even an investment condo should be getting a mortgage pre-approval.
Knowing the price range of the properties you are able to get a mortgage for – before you fall in love with a home out of your financial reach – will save you a lot of heartache, not to mention valuable time and effort. Plus, a mortgage pre- approval means you can lock in on a favourable interest rate for the next three to four months of your search.
But, perhaps, most importantly, a mortgage pre-approval signals to sellers that you are a serious buyer, and that the trans- action will be efficient and problem-free. That’s another feather in your buyer’s cap, especially in a bidding situation.
Don’t just go to your local bank and expect to get the best mortgage rate. Do your own research or use a mortgage broker who works with many lenders including major banks and often has access to better rates. Even half a percentage point can make a huge difference in your regular payments and the amount of interest you’ll pay over time.
Getting a mortgage pre-approval is not complicated; the actual process takes an hour or so. What you might find a bit more time consuming is getting together the required documentation. Specifically, you’ll need the following:
● Identification documents
● Proof of income (e.g., tax documents, pay stubs or a letter from your employer)
● Your current mortgage or rental documentation
● Proof of valuable assets such as cars or other properties that the lender can use to establish your net worth
● Recent financial statements from all your bank accounts
● Statements of any debt you might have including credit cards, student loans, car payments and other loans
● Documentation showing any long-term legal financial com- mitments such as child or spousal support payments.
We can put you in touch with one of our mortgage brokers to take a look at your portfolio and advise you on the best products/options available.