What is a Pre-Approved Mortgage

What is a Pre-Approved Mortgage

By Stephanie Miller, Marketing Coordinator

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Buying a home is one of the largest investments you will ever make. With such a big decision, it can quickly become an overwhelming process. In this week’s blog we thought we would share where we suggest that you start first!

First step: Before you start looking for a home, you should first visit your lender to get a pre-approved mortgage. A pre-approved mortgage is when a lender has made a commitment (subject to conditions) to loan you money. There is no cost to you to get a pre-approved mortgage, you’re not obliged to accept the mortgage and your mortgage rate also gets locked in for a set amount of days. This will provide you with a budget and that can help you determine which community you want to live in and what size home you hope to buy.

How the amount is decided: To come up with your pre-approval, the lender takes into consideration your household income, expenses, assets and other debts. They can also help you factor in additional expenses such as heating, insurance, maintenance and property taxes (to name a few). From there they provide you with a pre-approval amount.

What are the Benefits: Having a pre-approved mortgage can save you a lot time as you know which homes you can afford. Then once you’ve found your home and make an offer to purchase, the seller can give it serious consideration knowing that you have financial backing.

If you are still unsure if renting or buying is the best option for you, click here to take RBC’s Home Buying Readiness Quiz.

For more information contact our Cedarglen Homes financial expert;

Cheryl Mills – 403.238.8506

cheryl.l.mills@rbc.com

Have a good weekend,

Cedarglen Marketing

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2 Comments Add yours

  1. Lana Waller says:

    Good article here explaining the differences between Prequalified and Preapproved mortgages. Some of the public and even some Realtors are not clear on the differences.
    http://bit.ly/1j8jq2z

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