6 Reasons to be Pre Approved for a Mortgage Early
                     
6 Reasons to be Pre Approved for a Mortgage Early



6 Reasons to be Pre Approved for a Mortgage Early

When you think of the first steps involved in buying a home, you’re probably thinking
about talking to a real estate agent and viewing homes. In fact, these aren’t the first
steps towards buying a home. The first steps happen months before, in the office of
your  mortgage broker. That’s  right,  the  very  first  step  to  buying  a  home should  be
applying for mortgage pre-approval. Applying for mortgage pre-approval in advance will
allow you to address problems with your application, avoid embarrassing situations, and
side-step the potential for financial hardship.

Increase your buying power with a larger down payment
One of the key benefits of early mortgage pre-approval is that for the first time you’ll
have an accurate view of your buying power. Your Canada mortgage broker will use
your  income  information  and  your  down  payment  information  to  determine  your
maximum purchase price, and you’ll have a firm idea of how much home you can afford.
Once you know your maximum purchase price, you’ll know whether your buying power
matches the types of homes and neighbourhoods you have in your sights.

If  it  doesn’t,  you can increase your  down payment,  which will  increase your buying
power. There are three primary ways to increase your down payment amount.

Secure a lower rate
While Canada has been living in the era of ultra-low interest rates for almost a decade,
mortgage interest rates have been slowly creeping up over the past year and a half. If
you know you want to buy a home soon, and you want to take advantage of today’s low
rates, applying for mortgage pre-approval will help you achieve this goal.  ClearHome


Mortgage Solutions provides  best mortgage consulting services online in Canada.
We use our access to hundreds of lenders across Canada to select the mortgage that
has the lowest cost of borrowing for you. Mortgage pre-approval comes with the option
to lock in a specific mortgage rate for a certain number of days, usually 120 days. Rate
holds are usually applied to fixed-rate mortgages. If rates rise during your rate hold, you
are  entitled  to  the  lower  rate.  If  rates  drop,  your  Canada  mortgage  broker  will
renegotiate the lower rate on your behalf.