For many Canadians, being a homeowner has been a lifelong ambition. However, like with any new experience, there is uncertainty, and you may find yourself second-guessing yourself once or twice. You’ll be interviewing realtors, looking at houses, anticipating bidding battles, and, of course, qualifying for a mortgage.

Obtaining a pre-approval is one of the finest things you can do to streamline the process and boost your confidence in your purchasing power. A pre-approval tells you how much you can borrow with little risk. However, like with anything mortgage-related, you’ll want to grasp the pre-approval procedure before you begin.

We can assist you if you are a first-time home buyer in BC, Ontario, Alberta, or other provinces. Here are some dos and don’ts when it comes to mortgage pre-approval.

Five mortgage pre-approval tips

The mortgage pre-approval procedure isn’t rocket science, but it’s critical. If you read and follow these five suggestions, you’ll be able to receive a fantastic bargain on your mortgage.

1. First, you must apply

Most Canadians believe that the first stage in the home-buying process is to call a realtor and begin looking at properties. This is incorrect. The first step is to apply for a mortgage pre-approval. After all, if you locate a home you like, you’ll want to move as soon as possible. Pre-approval for a mortgage eliminates an unnecessary step in the process.

Being pre-approved also enables you to determine how much you can afford to spend. With our mortgage affordability calculator, you can obtain a decent idea of how much you can afford. However, the hard limit will always be how much the bank will approve you for — a mortgage pre-approval provides you with that information.

How long does it take to receive a pre-approval for a mortgage? If you have all of your documents ready, you can complete them in an hour. To get started, contact a mortgage broker in your area.

2. Shop around for an excellent pre-approval rate

A pre-approval is only as good as the rate you get. Before you apply, you should shop around and compare mortgage rates so that you can get a pre-approval at the best rate possible. If your credit score is solid and you have a down payment, you should be able to get a great rate.

3. Prepare your documentation well ahead of time

The mortgage pre-approval process involves several documents. You’ll need to bring in your pay stubs, proof of assets and a plan for your income. Once you have a pre-approval letter, you can start looking at homes.

4. Make sure your income is stable

The mortgage pre-approval process takes your own personal income into account. When you apply for a mortgage pre-approval, you’ll need to estimate how much you can bring in each month.

What does this mean? It means that your income needs to continue for at least a year. It’s probably not a good idea to use a credit card to get your pre-approval. If you plan on switching jobs before you buy a home, you should vary your mortgage application accordingly.

5. You should have a down payment ready

One of the main benefits of getting a pre-approval is knowing how much you can afford. The standard for a mortgage pre-approval is to have at least 10% down. Your mortgage pre-approval will show you exactly how much you can spend. It’s up to you to decide if you can afford it.

If you can’t come up with a down payment yet, that’s okay. Just make sure you know exactly how much you can spend, and keep working on finding a way to raise the down payment.

Conclusion

Getting a mortgage pre-approval is an excellent way to simplify the process of buying a home. Rather than going in blindly, you can get an idea of what you can afford and how you can move forward with the process.

It’s worth taking your time and doing the legwork to find the proper mortgage pre-approval so that you can find the right home. Whether you settle in the city or the country, buying a home is a big step. Put the time in upfront to find the best deal, and you’ll be more confident when you make the move.

If you’re in the market for pre-approval services in Ottawa, Mills Financial Group is the one to turn to! Our team’s combined financial expertise ensures you end up with a financial solution that meets your budget. Schedule a free consultation with our team today!