Are you planning to get pre-approved for a mortgage but are not quite clear about the process? If so, in this article, we will examine four do’s and don’ts that you need to understand.
1. Do make sure you get pre-approved before you contact a real estate agent
When you are ready to start house hunting, you may feel like you should immediately start contacting real estate agents. However, to save time, frustration, and stress, you should first get pre-approved for a mortgage to find a house you can truly afford.
Another great way to determine how much you can afford is with an Ontario mortgage qualification calculator.
2. Do have all your paperwork organized
It is vital to have all of your paperwork organized before you try to get pre-approved for a mortgage. Your lender will need you to provide them with the following information: identifications, detailed bank statements, proof of assets and income, and details about any debt you may have.
3. Don’t get pre-approved for a higher mortgage than you can genuinely afford
With housing prices these days, it can be easy to get carried away with how much you’re willing to spend on a home, especially if you’re pre-approved for a higher mortgage than expected.
Just because you get pre-approved for a high mortgage does not mean you should automatically readjust your house-hunting budget. Crunch the numbers and determine how much of a mortgage you can truly afford—and don’t forget to consider potential interest rate fluctuations!
4. Don’t make significant life changes
Finally, it is essential to avoid making any significant life changes while you are in the process of getting pre-approved for a mortgage. Major life changes can include things like quitting your job or taking on more debt, both of which are bad ideas when looking for a mortgage. Lenders are looking for someone who is stable and not drowning in debt.
Preparation Is the Key to Successfully Getting Pre-approved for a Mortgage
The best way to ensure that you can get pre-approved for a mortgage is to make certain you are organized and have all your paperwork in order.
Are you interested in knowing how much of a mortgage you could potentially afford, but not ready to talk to a lender yet? You can use our mortgage qualification calculator to understand better how you can afford to pay for an Ontario home. It can help you see at a glance how different factors (such as the amount of your down payment) will impact your monthly mortgage payment.
Ready to move forward with getting pre-approved?
If you’re ready to do so, then you need to talk to one of our mortgage brokers at Northwood Mortgage! To learn more about how we can help you get pre-approved, call us at 888-257-8130 or contact us online.
