Cecilia Ragragio

Pre-approvals are one of the easiest way to start off the home buying process on the right foot. It's a very good idea to get a pre-approved mortgage before you start shopping. Many Realtors will ask if you've been pre-approved. A lender will look at your finances and figure the amount of mortgage you can afford. Then the lender will give you a written confirmation, or certificate, for a fixed interest rate. This confirmation will be good for a specific period of time. A pre-approved mortgage is not a guarantee of being approved for the mortgage loan. Even if you haven't found the home you want to buy, having a pre-approved mortgage amount will help keep a good price range in mind. Lenders may require the following for pre-approval: Your personal information, including identification such as your driver's license Details on your job, including confirmation of salary in the form of a letter from your employer All you sources of income Information and details on all bank accounts, loans and other debts Proof of financial assets Source and amount of down payment and deposit Proof of source of funds for the closing costs (these are usually between 1.5% and 4% of the purchase price) Getting a pre-approval helps you establish a maximum spending limit when looking for your dream home before you shop, so you know what price range to target! Many home buyers aim too high, bidding on a home outside of their budget. Later they learn the home is beyond their means due to other financial factors. Having a pre-approval eliminates the stress of not knowing what you can afford and what your payments will be. Received a guaranteed interest rate for 120 days! In today's rising interest rate environment, it's smart to protect yourself from rising rates down the road. Our Lenders guarantee the interest rate for 120 days from the date of the pre-approval. Eliminate the guesswork! When obtaining a pre-approval your Mortgage Agent will discuss the full range of mortgage options available to you, eliminating any assumptions and myths you may have about mortgages and buying a home, especially if you're a first time homebuyer. A pre-approval is very different than simply calculating how much you can afford. Taking the time to calculate your income, existing payment obligations and proposed mortgage payment to determine a rough estimate of how much you might be able to borrow is a valuable step in the planning process. (Source: CMHC)