What is a pre-approved mortgage certificate?
A pre- approved mortgage certificate secures a mortgage amount at a guaranteed rate for a specific length of time. If the interest rates change, you are guaranteed the rate of your certificate and know the amount you will qualify for. You're under no obligation to purchase a home within the time period however you can look for a home with and shop with confidence knowing the amount of load you are approved for.
Why is it important in buying a home?
Being pre-approved for a mortgage helps you when negotiating the purchase of a property to know your affordability and especially if you are facing a multiple offer situation. By making your mortgage financing arrangements, you are at and advantage when you negotiate with a vendor by showing them you are a serious buyer.
What do you need to get one?
. Employment details including overview of your income/salary
. Official government ID - driver's licence or passport would be ideal
. Other sources of income you may have
. Bank accounts, loans and debt information
. Proof and source of down payment & deposit
. Proof and source closing costs (typically 1.5% of total buying price)
. Proof of your financial assets