Getting Pre-Approved for a Mortgage – The Steps You Need to Take

Getting Pre-Approved for a Mortgage – The Steps You Need to Take

The mortgage pre-approval process in Canada is actually one of the more straightforward processes in buying a house. All you have to do is provide some documentation, run some numbers, and sit back and let the lenders and banks work out how much of a home loan you should receive. You’ll see that getting pre-approved for a mortgage isn’t so tough, after all.

Finding a Bank or Lender

One of the most difficult decisions you’ll come across is choosing which bank or lender to do business with. It has to be someone you can trust because you’ll be working with them for the next five to fifteen years, depending on how long the length of your mortgage works out to be. So, how do you even choose the right one?

One way to search for a lender is to simply do it yourself. Shop around for different banks, or a private lender, and see what they have to say. Once you hand over all of your documentation, they should come back with a purchase price and the interest rate associated with it. Most banks or lenders will lock in the interest rate for 60 to 120 days, so be sure to ask how long you have to find a house.

If you don’t want the hassle of finding a lender yourself, you can come to us. At iMortgage Solutions, it is our responsibility to contact all of the lenders and banks on your behalf to get you the best rates in the business. All you have to do is sit back and let the offers come to you. Then you can work with your broker to pick the one that best suits your needs. We get paid by the lenders, on a commission, so you will have no out-of-pocket expense by using our services.

Documents

Another part of the pre-approval process is getting all of your paperwork in order, so the lender will know just how much to let you borrow. You’re going to need your proof of employment, tax return, lists of debts and assets, your down payment, and any other financial history or statements that you think will help. If your down payment is a gift from someone else, you also need a letter from them stating that they don’t expect to be paid back.

Once all of that is in place, the process becomes really easy. You’ll probably hear from five or more lenders with different loan amounts and different interest rates. Again, be absolutely certain to ask about how long the rates are locked in because that will give you an idea of how long you have to find the right house for you and your family.

If you need additional help learning about the mortgage pre-approval process, or to start the process yourself, contact Steven Crews at 403-870-2669 or steven.crews@verico.ca. He can help you every step of the way.

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