Pre Approval for your new purchase
When looking to buy property in Canada, utilizing the services of a mortgage broker can simplify the process of securing a mortgage pre-approval or pre-qualification. Acting as a mediator between borrowers and lenders, a mortgage broker can assist in finding the most suitable mortgage product to match your needs.
A pre-approval involves an assessment of your credit report and income information by a lender to determine the maximum mortgage amount you are eligible for. A letter of pre-approval is then issued, which can serve as evidence of your capacity to obtain a mortgage when dealing with real estate agents or sellers. In contrast, a pre-qualification is a less detailed procedure that provides an estimation of the mortgage amount you may qualify for.
The services of a mortgage broker can provide several advantages when seeking a pre-approval or pre-qualification. These include the ability to compare rates and terms from multiple lenders to determine the best mortgage product, offering guidance and advice on the application process, outlining the available mortgage types and their impact on monthly payments, helping you evaluate the amount you can afford to borrow, as well as assisting you in preparing and submitting your application to the lender.
It is crucial to recognize that obtaining a pre-approval or pre-qualification is not a guarantee of securing a mortgage.