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Are you wanting to buy your first home? A mortgage pre-approval calculator is a key step that will help you determine your financial parameters and get the process started. Here’s why you need to do this before you buy your first home.

What is a Mortgage Pre-Approval Calculator? 

When you get pre-approved by a lender, you receive a pre-approved mortgage certificate that verifies the maximum amount you’re allowed to borrow at a guaranteed interest rate. This certificate typically expires after 90-120 days, and if your closing date is within this time period, your guaranteed interest rate won’t change. The calculator is a tool that will determine the best rate depending on your mortgage term and compare it to rates that banks are offering.

What Do You Need? 

The mortgage pre-approval process asks you many of the same questions asked on a full mortgage application. A lender does a credit check, pre-approves you for a maximum amount, and gives you a mortgage pre-approval certificate. Although this doesn’t guarantee final approval, it lets you know how much money you can borrow.

How It Benefits You

A mortgage pre-approval certificate gives you confidence and peace of mind while you shop for your dream home. It can help you narrow your focus to homes within your price range and save time during the search process. A pre-approval certificate will prove you have the proper financial backing and can also improve your chance of getting the house in a competitive situation.

Choose a Mortgage Broker

With the help of a mortgage broker, you can get access to hidden rates that you wouldn’t otherwise receive because brokers work with a variety of lenders and have access to competitive interest rates.

Remember that a mortgage affordability calculator assumes you’re an ideal candidate for a mortgage and only gives an estimate of the amount for which you’ll be approved. To get a comprehensive picture of what you qualify for, speak with a mortgage broker about getting a mortgage pre-approval.

As your Mortgage Group professional, I offer one-stop convenience and impartial advice. My job is to help you find the mortgage that best suits your financial needs. Make an appointment with me at (306)220-0425.