Mortgage Lender Pre-Approval Guide
                     Mortgage Lender 
Pre-Approval
A Comprehensive 
Guide For Home 
Buyers
Why Mortgage Lender 
Pre- Approval is Essential
•Pre-approval from a mortgage lender is crucial 
for buying a home. It shows you what you can 
afford and gives an advantage when making an 
offer.
 
•Pre-approval is essential to secure your dream 
home and avoid disappointment. It gives you 
the confidence to shop within your budget, 
reducing the risk of losing out to others who 
already have financing.
Full Article at Winnipeghomefinder.com
What factors influence 
Pre- Approval?
•Mortgage pre-approval depends on factors 
such as credit history. Lenders examine credit 
score and report to assess loan qualification.
 
•Lenders check your employment and income 
for stability before approving your mortgage to 
ensure timely payments.
Your Credit 
History
•Credit history is key for mortgage approval. 
Good score = lower rate & better terms, bad 
score = difficult approval.
 
•Lenders check credit reports for payment 
history, debts, and bankruptcies before 
approving mortgages. Regularly reviewing and 
correcting errors on credit reports is crucial 
before applying.
Full Article at Winnipeghomefinder.com
Your current employment 
and income
•For mortgage pre-approval, lenders consider 
employment and income stability as crucial 
factors. A stable employment history with 
consistent income assures the lenders of 
timely mortgage payments.
 
•Self-employed or with irregular income? Don't 
fret. There are options, but prepare to submit 
extra documentation to prove reliable income.
Your debt to income 
ratio
•Debt to income ratio is important for mortgage 
pre-approval. It measures your debt against 
your income, and lenders use it to evaluate 
your ability to repay.
•  
•Aim for a debt to income ratio below 43% to 
get approved for a mortgage. Increase income 
or reduce debt to improve it.
Full Article at Winnipeghomefinder.com
Preparing for your 
Mortgage Pre-Approval
•Preparing for mortgage pre-approval is crucial 
for buying a home. Collect required documents 
and ensure financial profile is good.
 
•Check credit report/score first. Fix 
errors/negative marks before pre-approval.
Repair any credit 
issues
•Fixing credit issues is crucial for mortgage 
pre-approval. Lenders assess credit history to 
determine creditworthiness, and 
errors/delinquencies can harm approval odds. 
Check/report errors and settle debts.
 
•Improve credit score before pre-approval by 
paying debts, on-time payments, no new 
inquiries. Credit counselor or advisor can also 
help.
Collect all necessary 
documentation
•To get pre-approved for a mortgage, gather 
recent pay stubs, tax returns, bank statements, 
and other required financial documents.
 
•Ensure accurate and current documents to 
avoid delays or denials in pre-approval.
Full Article at Winnipeghomefinder.com
How to select the right 
mortgage lender
•Picking the right mortgage lender is vital when 
buying a house. Researching and comparing 
lenders can save you thousands throughout 
your loan's life.
 
•Check interest rates, fees and customer service 
of lenders. Look beyond just the lowest rate, 
watch out for hidden fees, and choose a lender 
with good responsive service.
Why your REALTOR should 
be your first call
•A good REALTOR is crucial in home-buying 
and can help with the mortgage pre-approval 
process. They know the local real estate market 
and can suggest reliable mortgage lenders.
 
•A REALTOR can guide you through the pre-
approval process, and answer your questions 
about documentation and the terms of your 
letter. They help you make informed decisions 
throughout your home-buying journey.
The Mortgage Pre-
Approval Roadmap
•To secure a home buying experience that’s 
hassle-free, follow the critical steps of the 
mortgage pre-approval process.
 
•Find a good lender to guide you through pre-
approval. Submit financial information, like 
your credit score and income, for review. You'll 
be provided with a pre-approval letter 
outlining your borrowing limit and interest 
rate.
Full Article at Winnipeghomefinder.com
Call the Mortgage Lender 
and submit required 
documents
•Choose a lender, call, submit docs. It's crucial 
to verify finances for pre-approval.
 
•Gather financial records like pay stubs, tax 
returns, and bank statements to provide the 
lender during this stage. Stay organized for a 
smooth process.
What is the Mortgage 
Stress- Test?
•Mortgage stress-tests help lenders ensure 
borrowers can afford payments in rising 
interest rates. Canada adopted it in 2018 to 
curb over-borrowing.
 
•Stress-test mandates mortgage borrowers to 
qualify at higher rates than their actual 
payments, assuring affordability in case of 
interest hike. It's applicable to all fresh 
mortgages & renewals with new lenders.
How long does the 
pre- approval last?
•Mortgage pre-approvals typically last 60-120 
days, depending on the lender and mortgage 
type.
 
•Pre-approval is not a guarantee for mortgage 
approval. Any changes to your finances during 
this time may affect your chances of approval.
Full Article at Winnipeghomefinder.com
Can you be denied after 
being pre-approved?
•Pre-approval for a mortgage does not 
guarantee approval upon actual application, 
despite providing an estimated home buying 
budget. Denials are possible.
 
•Mortgage application can be denied after pre-
approval if financial situation changes, 
property issues or problems with 
documentation.
The role of C.M.H.C. and 
other mortgage insurers.
•CMHC is a major player in Canada's mortgage 
market, providing lender insurance against 
borrower defaults. Lenders can recover some 
or all of the outstanding balance by filing a 
claim with CMHC in case of default.
 
•Aside from CMHC, private mortgage insurers 
like Genworth Financial and Canada Guaranty 
provide comparable services by offering 
mortgage insurance to lenders. This 
safeguards them from borrower default, and 
although their terms may differ, their 
fundamental purpose is the same. Full Article at Winnipeghomefinder.com
Things Not To Do After 
Being Pre-approved
•Post getting a mortgage pre-approval, avoid 
big purchases or new debt to prevent issues. 
Such actions might hurt your credit score and 
debt-to-income ratio and potentially lead to 
pre-approval revocation.
 
•Don't change jobs or quit before finalizing your 
mortgage; lenders want stable income. Wait 
until after closing to make any major career 
changes.
Conclusion: The Benefits 
of Mortgage Lender Pre- 
Approval
•Mortgage pre-approval has several benefits. It 
helps you find a property that fits your budget, 
and gives you an advantage in a competitive 
market as sellers favor pre-approved buyers.
 
•Pre-approval helps you save time and stress by 
making the home-buying process smooth and 
efficient. With a pre-approval letter, you can 
act fast and avoid obstacles while finding the 
right property. It also gives you peace of mind, 
securing your financial stability.
Mort
Mortgage Lender Pre-Approval
Mortgage Lender Pre-Approval