Get Pre Approved For A Mortgage
Getting pre-approved for a mortgage is essential when buying a home as it allows you to understand how much you can afford to spend as well as helping to lock in an interest rate to save you money.
Talk to a mortgage specialist
Talk to your bank, mortgage specialist or independent mortgage broker to compare rates and terms for your mortgage.
Complete an application to find out how much you qualify for
Two primary ways of determining your eligibility for a mortgage include calculating your GDS and TDS ratios. These factors determine how much you can reasonably afford to spend based on your down payment, income, and other financial factors.
Gather your financial information to finalize pre-approval
Your bank will require documentation to support your application. Documentation generally includes things such as income and down payment verification.
Obtain a copy of your pre-approval
Being a pre-approved buyer is an asset when dealing with sellers, as it is one less thing for them to worry about. It also allows your real estate agent to target homes that fit within your approved price range.