Hey it’s me Alex Wickham, are you looking for a Wicked home?
So you’ve determined that you want to buy, and you’ve got an idea of what it will cost you to own a home. Before you even think about going out to see homes you need to get pre-approved.
But what does that mean? Getting pre-approved is sitting down with your mortgage broker, or mortgage specialist from your bank so that they can let you know how much you can afford, your interest rate, and your monthly mortgage payments.
Why is getting pre-approved important? Online mortgage calculators are great for getting a general idea of your budget, but they aren’t perfect. There is a lot more to consider when giving a pre-approval, for example the stress test regulations put forward by the government. I’ve found that, sometimes people can’t afford as much as they think, and sometimes the opposite is true as well.
Another advantage is that, being pre-approved can put you in a better position when negotiating, since you’ve already done most of the work upfront.
When you go in to meet with your lender, make sure to bring your employment information, proof of income, proof of address, government issued ID, and proof of downpayment *5%-20%*. Also make sure you’re specify whether you’re looking to buy a freehold or a condo, and make sure to ask for the pre-approval document.
I hope I impressed upon you the importance of getting pre-approved.
If you have any questions, or your looking for a Wicked home, call Wickham.