Mortgage Guide: Mortgage Pre-Approvals

Mortgage Guide: Pre-Approvals

So you’re a first time home buyer in the Windsor real estate market. Or maybe you are looking to refinance your current home, or even upsize to your next home. In any scenario you’ll first need to get a mortgage pre-approval. We’ll walk through all the basics of mortgage pre-approvals here so you can start looking for houses for sale in Windsor or whatever other Greater Windsor Area you’d like to live in from Tecumseh to Amherstburg or anywhere else.

First, what is a mortgage pre-approval? There are 3 main things it provides. First when looking through Windsor homes it will allow you to know the maximum amount of a mortgage you can afford. The second thing it can do is help estimate monthly mortgage payments. Finally, it locks in your mortgage rate for 60-130 days depending on your lender.

Where can you get a pre-approved mortgage? You have plenty of options that can provide you with their services. Banks, credit unions, and mortgage brokerages are the most common places. However some insurance companies, loan companies, and trust companies, may also provide pre-approvals. Just remember all lenders will have different rates, so shop around to find the best rate for you.

What will lenders need to know about you in order to pre-approve you? Lenders will look at your assets, or what you own, your debts and liabilities, as well as your income. To get all this information you’ll need to be prepared with identification, proof of employment (a pay stub as well as 2 years worth of assessments from the Government of Canada is traditionally used), proof of downpayment, and financial records showing information on your assets and liabilities or debts.

With all this information your chosen lender will be able to provide you with a pre-approval amount to begin house hunting with. But do not forget about things like closing costs, moving costs, and on-going maintenance costs. You can’t put all of your money towards the purchase price and ignore these additional often forgotten costs. Make sure to factor them in. For more information on pre-approvals CLICK HERE.

(h/t https://www.investopedia.com/mortgage-preapproval-4776405)

Here at Jump Realty our agents will give you honest advice on what course of action is best for you in their professional opinion and will always put taking care of your best interests first! With offices in Windsor, Tecumseh, Kingsville, and Chatham, no matter where you are, a Jump agent is ready to help. Please contact us for any housing needs and let us give you a better real estate experience!