The mortgage pre-approval is the first step in buying a home. It allows you to be well prepared before making this important transaction, notably by informing you on your budget, your borrowing capacity and the amount of your down payment, not to mention the cost of your mortgage.
At Multi-Prêts, we help you get pre-approved for a mortgage and plan the most efficient strategies for your home purchase!
What is a mortgage pre-approval?
The mortgage pre-approval, in addition to certifying your ability to buy, helps you determine essential elements for shopping for your property.
- The maximum amount you can afford to purchase your home: you will know which homes are within your financial means and whether you will have to compromise more or less to find the one that suits you.
- The amount of the down payment: you will have a better idea of your ability to pay the down payment and of the optimal amount to pay for your home (note that a down payment that is too high can sometimes be disadvantageous).
- Your maximum mortgage amount: down payment, bank qualification rate, geographic location and property type all have the potential to influence the loan you get. Pre-approval, combined with our payment calculator, allows you to analyze these influences under various scenarios.
- Mortgage payment amounts: Get a detailed overview of what you will have to pay each month, based on the amount borrowed, the interest rate and the amortization period.
Why apply for a mortgage pre-approval?
This document allows you to verify that you will be able to meet your mortgage obligations, prepare for your home purchase expenses and demonstrate to sellers that you are serious and capable of completing the transaction.
To the real estate broker, for example, you appear as a qualified and prepared client, which tells them that their time is well spent working with you.
Finally, you increase your chances of success when it comes time to make a promise to purchase, since you will know exactly whether or not you have the borrowing capacity required to purchase the home.
How do I get pre-approved for a mortgage?
To obtain your pre-approval, you must provide one of our Multi-Prêts mortgage brokers with documents confirming your income (which may vary depending on whether you are employed, seasonal, self-employed or retired) and your down payment.
We can also add to the list your investment income, parental allowances and alimony. Finally, we will attach a copy of your credit report to your application.
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