Mortgage Pre-Approval

Sometimes getting a mortgage and great interest rates can be a hassle when you are considering buying a home. More often than not, it is beneficial for you to obtain a mortgage pre-approval (and look into interest rates) from a lender before you start house shopping. This fact is especially true for the first time home buyer.

A mortgage pre-approval entails a lender looking at your financial situation and determining how much of a home they believe you can afford. Not only do you need to make sure the home will fit within your budget, but the lender also has to make sure they believe you can pay the mortgage payment to decrease the risk of default—especially if you are a first time home buyer.

In the end obtaining a mortgage pre-approval can actually be beneficial to you throughout the home buying process.

Why is the Pre-Approval Process Important?

The great thing about a mortgage pre-approval is that the lender essentially provides you with an upward limit on the amount of a loan you can receive. This is particularly helpful for a first time home buyer since it tells you how much the lender thinks you can afford.

However, a first time home buyer (or even a seasoned home buyer) should use this number as an upward limit—not as the goal for buying a home. For example, if the lender says you can afford a $350,000 home then it does not mean that you should purchase a $350,000 home. At the end of the day you still have to take your personal budget information into account when buying a home.

Along with providing you with a limit of how much you can afford, a mortgage pre-approval is often very appealing for the seller. Therefore, if you have been pre-approved and someone who is competing against you for the home has not obtained pre-approval, the seller is more likely to select you as the buyer.

Do you know how much you can spend on a home before you start looking?

Free Mortgage Pre-Qualification

Benefits

• •Know your price range.
• •Low interest rates.
• •Negotiation power.
• •Peace of mind.
• •Quick approval (As fast as 24 hours).
• •And much more...

Office: (905) 338-1515

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Utilize the Mortgage Payment Calculator

After obtaining your pre-approval, it is essential to take the information you were provided and plug the numbers into a mortgage payment calculator to determine your estimated monthly mortgage payments. The mortgage payment calculator takes into consideration the home price, interest rates, down payment, amortization term, and home insurance and taxes, and will reveal your estimated monthly mortgage payments.

The mortgage payment calculator is essential for everyone, but especially for the first time home buyer. By utilizing the calculator, a first time home buyer can quickly determine how interest rates affect their mortgage payments and understand how much they need to save for the down payment when buying a home.

When considering buying a home, obtain a mortgage pre-approval and look into current interest rates to help make the home buying process easier and more efficient.