Getting Pre-Approved for a Mortgage Loan is a Must!

When looking for your dream home you want to come prepared. Speaking with a mortgage lender should be one of the first things you do. When working with a YYC REALTOR®, in many cases, the REALTOR® will be able to refer a lender that is tailored to your needs. A mortgage lender will obtain specific financial documents and calculate how much of a mortgage you can afford. They look at a debt to income ratio and determine what you can financially afford in the way of a mortgage payment. This then establishes the amount you can borrow for a home loan.

Once the mortgage company has determined the amount you can borrow they will prepare a pre-qualification letter. When you find the property you want to purchase, the pre-qualification letter is simultaneously submitted with your offer. This gives you an edge up on someone who might submit the same offer but without the pre-qualification letter. The buyer knows you are serious and now knows you have access to the funds to complete the transaction.

Consider the following:

You have been house hunting for several months. The home of your dreams now becomes available. No one tells you about the pre-qualification process. You put a bid in on your dream home. You and the seller work out the perfect scenario. You give notice to your landlord. The seller finds a new home. Everything is going great. You then receive a call from your YYC financial institution informing you that you do not qualify for a mortgage of that size. Now the house hunting process starts all over for you. You most likely will not be able to keep the place you were renting & the Seller now cannot move because he cannot afford two mortgages.

Your pre-qualification letter is reviewed with your offer.

The best scenario is that your YYC REALTOR® informed you of the pre-qualification process. With their help you contacted a lender and obtained your pre-qualification letter. Now after several months of house hunting, the home of your dreams is available. You are one of two people submitting an offer. The seller views both offers. Your pre-qualification letter is reviewed with your offer. The other potential buyer does not submit a pre-qualification. Who do you think the seller will negotiate with first? Who appears to have the funds available for a quick, easy sale?

The YYC Real Estate Club is locally owned and well-established within the greater YYC real estate market.

If you would like more information on mortgages or have a comment on this or any other YYC Real estate Club blog…please contact myself at:

www.kenilynnbouvier.ca

[email protected]

Vertigo Maximum Mortgages Inc…

[email protected]