Shopping for a home is can be an exciting event, but it can also be unpleasant. The first stop in the home buying process is talking to your mortgage broker. As a potential buyer, your real estate agent will take you more seriously if you have a mortgage pre-approval from a lender when you contact them. Getting a mortgage pre-qualification is the first step to a pre-approval. More often than less you will be able to fill out an online pre-qualification.

Completing a mortgage pre-qualification from a mortgage broker takes about one to five minutes. Canadian mortgage brokers have access to multiple lenders and should be your first choice rather than going to the lenders directly. They would be able to assess your current situation and recommend a lender.

Once you have discussed you:

  • Credit and discuss issues that might prevent the best rate and solutions to increase your credit score, if necessary.
  •  Income and how much you qualify for depending on the lender’s criteria
  • Short and long term goals – maybe you need a 3-year mortgage term for various budgeting or work-related issues.

Always give yourself some room to maneuver by not maxing on the amount you qualify for so that you can budget for the unexpected. the new reality will be that in addition to a mortgage payment you will have property taxes, house insurance, home renovation projects that will be additional spending once you have purchased a home.

Lastly, home sellers prefer working with a buyer who comes to the table with a mortgage pre-qualification letter. The will sometime accept an offer with a lower price knowing its s done the deal.

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