3 tips on Why you Should get a Mortgage Pre-Approval!

Hey everyone! It’s Mario Armani from Royal Lepage & I wanted to give you 3 quick tips on why you should get a mortgage pre-approval before you start home shopping. What is a mortgage pre-approval? A mortgage pre-approval is written assurance from a Lender that you’re able to borrow money to purchase a home up to a certain amount. It’s based on the income, credit history, employment and asset documentation that you supply at the time of application. Tip #1: Protect yourself from any possible interest rate hikes. So far in 2017, interest rates went up twice with a possible third increase on the horizon. A pre-approval locks in your interest rate anywhere from 60 to 120 days thus assuring the agreed upon lower rate should they rise. Tip #2: You’ll Know What You Can Afford. There’s no sense of looking at a property unless you can actually afford to buy it. A pre-approval allows you to find out what your maximum purchase price is this way you’ll only view homes that are in your budget. Tip #3: You’ll have a chance to review & fix your credit score. Your lender can give you tips on how to fix mistakes on your credit report or improve your credit score. Sometimes that process can take several months, so the sooner you start, the better. If you’d like to purchase a property, getting a mortgage pre-approval should be your first step. It’s an easy, no cost, no obligation process. So remember: 1) You can protect yourself from any possible interest rate hikes, you’ll know what you can afford & you’ll have a change to review and fix your credit score. Hopefully you found these tips useful. If you have any other questions reach out & I’ll be happy to help! Thank you so much for watching & have a great day!

Paul Whisler

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