In Toronto, securing a pre-approved mortgage puts you ahead of the competition. A pre-approval process allows a prospective homebuyer to know whether or not he/she meets a lender’s criteria for a mortgage. While it doesn’t guarantee that a mortgage will be secured, it can certainly speed up the process. While this is not mandatory, it allows a homebuyer to be more realistic about their chances of securing a loan. The most important advantage, however, is that it protects the homebuyer from a spike in interest rates. This gives the homebuyer time to secure a good mortgage with peace of mind.
A pre-approval process usually lasts from 90 to 120 days prior to the planned purchase of a home, which means that you should secure a mortgage within this timeframe-especially if interest rates are not stable. During this time you should make a thorough assessment of your financial situation (ideally with the help of a mortgage broker). You should already have enough saved up for a down payment; it’s not wise to attempt to borrow for one if funds are lacking.
You will have to be prepared to give information about your personal assets and income. If you are meeting with a mortgage broker or bank representative in person, you will also need to have identification and employment history. Finally, you must provide a detailed list of liabilities, such as any outstanding loans and financial obligations. At Northwood Mortgage™, these details can be provided online via the website. The more information you give, the more accurately you can be assessed for pre-approval.
In a seller’s market, getting pre-approved will increase your chances of buying the home you want at a price you can realistically afford. Realtors are more likely to get you the right home when they know you have been pre-approved. Also, it gives the seller confidence that you can purchase the home when the time comes. The most important advantage is that you can secure a mortgage at the best rates. Even if interest rates drop, the lender will give you a loan at the lower rate. Finally, the lender will give you preference, seeing as they already have some information about you. It is important to note, however, that being pre-approved doesn’t mean that you will secure a mortgage. It just means that if you do secure a mortgage, you will at least be guaranteed the lowest possible rate.
At Northwood Mortgage, we have experienced financial advisers who can assess your situation and help you get the best mortgage. Because we deal with so many institutions, we can negotiate the best rates on your behalf. Give us a call today for a free consultation or visit our website. Our phone number is 416-969-8130 or 1-888-495-4825 (toll free). Email us at email@example.com or browse our website at www.northwoodmortgage.com. If you would like to visit our office, we are located at 7676 Woodbine Avenue, Suite 300, Markham, Ontario, L3R 2N2 Canada.
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