New to Home Financing? Start with a Mortgage Pre-Approval

Imagine walking into a restaurant without knowing if you can afford the meal. House hunting without understanding your budget is a similar experience. While browsing MLS listings from home is fun, when you're ready to view properties with a real estate agent, you need a pre-approval.

A pre-approval isn't a magic wand or a binding contract that guarantees mortgage financing. Rather, it's an initial assessment of your financial health that sets you on the right path. In essence, a pre-approval is a roadmap that guides you to secure an actual mortgage approval, revealing how much you qualify for.

Lenders assess your income, credit history, assets, liabilities, and the property itself when reviewing your mortgage application. A pre-approval helps you navigate these areas, identifying any major obstacles to securing financing.

It's wise to secure a mortgage pre-approval as early as possible. Some hurdles that a pre-approval may reveal include:

• Job changes and probation periods
• Income reliant on extra shifts or commissions
• Errors or collections on your credit report
• Lack of established credit profile
• Insufficient down payment funds
• Debts that lower your qualifying amount
• Unforeseen issues

Even if you think you're well-prepared, going through the mortgage pre-approval process with an independent mortgage professional, like Laura Mackie and the team at Key Momentum Mortgages Ltd., ensures you have the best shot at a final approval. Note that a pre-approval is different from a pre-qualification, which only involves inputting basic information into a website. A pre-approval requires providing financial details, reviewing your credit report, discussing a mortgage plan with a professional, and submitting documents in advance.

Navigating mortgage financing can be intimidating, but it doesn't have to be. Having a plan and being proactive are key to a seamless home-buying experience. With no cost or risk involved in obtaining a mortgage pre-approval, why not start the process today?

If you're ready to discuss your financial situation and get mortgage pre-approval for your new home, let's connect! We'd be delighted to assist you on this exciting journey.