Getting Pre-Approved For A Mortgage

Your Mortgage Matters by Vancouver Mortgage Broker Rebecca Awram

If you are shopping for a new home, be sure you have a mortgage preapproval. Obtaining a mortgage pre-approval provides you with a guideline on how much mortgage you will qualify for, and also provides a rate hold.

The mortgage broker that you work with to get your mortgage pre-approved will let you know for certain what you can afford based on lender and insurer criteria, and also what your payments on a specific mortgage will be.

Licensed mortgage consultants can lock-in an interest rate for you for anywhere from 60 – 120 days while you shop for your perfect home. Some mortgage brokers can even lock in rates for longer on new construction / builder projects. By locking in an interest rate, you are guaranteed to get a mortgage for at least that rate or better. If interest rates should drop, your mortgage pre-approval rate will drop as well. On the other hand, you are protected if mortgage interest rates should go up, as your locked-in interest rate will not. The rate hold on a mortgage preapproval is a strong protection and hedge against a short term rise in rates.

In order to get pre-approved for a mortgage, a mortgage broker requires some application information that will allow them to determine your buying power. They can then explain to you the benefits of shorter or longer mortgage terms, the latest programs available, which mortgage products they believe will most likely meet your needs the best, plus they will review all of the other closing costs involved with purchasing a home.

Getting pre-approved for a mortgage is something every potential home buyer should do before going shopping for a new home. A mortgage pre-approval will give you the confidence of knowing that financing is available, and it can put you in a very positive negotiation position against other home buyers who aren’t pre-approved. It gives you a significant advantage over other people bidding on the same home.


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