You may have heard of the benefits of being “pre-qualified” for a real estate loan, but did you know that it’s even more beneficial to be “pre-approved” for your mortgage?
Because the pre-approval process is more rigorous and thorough than the pre-qualification process, pre-approval is the first step you can take to owning your home.
Mortgages Alberta, your mortgage broker in Edmonton will ask some important questions to determine whether or not you qualify for pre-approval.
On the other hand, with pre-qualification, there are generally only two questions asked: what is your income, and what are your expenses? Because these simple questions lack context, realtors tend to be less likely to work their hardest for a merely pre-qualified individual. This is because they lack the confidence that the pre-approval process offers. It is worth it to contact the mortgage brokers at Mortgages Alberta for more information about obtaining a pre-approval.
There are additional benefits to having a pre-approved mortgage as well. First of all, many pre-approvals carry with them a fixed mortgage interest rate that is valid for up to 120 days. This means that you will not have to worry about rising mortgage rates in the time between your pre-approval and your home purchase. Second of all, it is even possible that you can qualify for a lower rate at the time of your actual loan approval so that you can be sure to get the very best value and the lowest mortgage rate. One of our experienced Edmonton mortgage brokers at Mortgages Alberta can assist you in taking this first step in buying a home.
It is important to remember that a pre-approval is not the same as a guarantee of financing. While pre-approval is the first step in obtaining home financing, it is not the only step. Be wary of mortgage lenders who imply that a pre-approval is a guarantee of future loan approval. Whether you’re searching for a mortgage broker in Alberta or elsewhere, always look for someone who is honest about all terms and conditions. The very best mortgage broker will be upfront and will tell you that pre-approval is not a guarantee of final loan approval. However, pre-approval is an important indication of your likelihood of qualifying for a real estate loan, and it can also give you a very precise idea of the mortgage interest rate you can expect and the amount of your monthly payments over the life of your loan.
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