November

Winter may be putting a chill in any thoughts of moving, but it’s never too early to get the ball rolling on your first home purchase! Let’s take a quick look at the pre-approval process for taking out a mortgage.

Know Where You Stand

Before you begin the application process, you should ensure that you are in good financial standing to receive a mortgage. We will start by ordering a copy of your credit report to make sure that you are in good standing financially and that there are no errors that may affect a lender’s decision. This document will show you and the lender whether or not you have consistently paid back your loans and credit cards, and how likely you are to follow through on your agreements.

Submission of Documents

When you begin the application process for a mortgage, we will need proof of your identity and financial ability to pay the loan back. We may assess these things by requesting:

- Photo ID
- Records of employment (E.g. T4’s, pay stubs, letters from employer)
- Bank account statements
- Proof of assets (E.g. cars, real estate, investments, or jewelry)
- And proof of liabilities (E.g. existing loans, credit cards, student debt, or child support)

Once these are verified, we can enter your application into the system to be considered for a mortgage.

Confirmation and Guarantees

So we’ve sent off your application, and you finally get the response you’ve been waiting for: “congratulations, you’ve been pre-approved for a mortgage”!

Before we finish here, there is one thing you should always remember. Being pre-approved for your mortgage does not necessarily mean you will get the exact sum you applied for, but rather that you are eligible for the current interest rate. This means that if interest rates go up, yours will stay as low as it was before, but if interest rates go down, yours will drop as well!

Being pre-approved for a mortgage can be an exciting achievement, but it is only the first step in the long process of purchasing your dream home. To make the rest of the process as easy as 1-2-3, give me a call today at (306) 220-0425 or to learn more about mortgages and begin the application process.