Mortgage Pre-Approval – The First Step to Buying a Home

Are you considering the purchase of a home, but are not sure where to start? Before you start looking at homes, you should speak with a qualified mortgage broker.

Mortgage professionals have access to lending products from many different lenders, but are not tied to any one financial institution. They can provide you with many options and only get paid once you choose a lender. By shopping your home loan across a range of banks, credit unions, finance companies, etc., a mortgage broker can often save you thousands over the term of your mortgage. The added benefit is that you only need your credit report pulled once and your mortgage broker can have multiple lenders compete for your business.

A mortgage broker will review your mortgage credit score and your financial situation including work history, income, liabilities, history of debt repayment and other factors to determine eligibility for a particular mortgage. The better your credit score is, the better the mortgage rates you will qualify for. A mortgage broker can get you approved early in the application process so that you know how much you can afford. This takes into consideration both your monthly payments and the actual out of pocket cost for the home. Usually a down payment of 20-25% is required, but mortgages are still available for buyers with a lower down payment.

By getting a mortgage pre-approved before you start looking at homes with your agent, you can eliminate properties that are not in your budget. An pre-approved mortgage can give you the edge over other buyers that have not yet secured financing. It also saves you time, money and frustration since you know how much you can afford before you begin the search for your dream home.

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There are other costs associated with buying a home, which your mortgage broker will cover with you. It is important to know ahead of time how much you will need for closing costs, lawyer fees, taxes, etc. Some costs can also be worked into your mortgage. Your mortgage broker can give you a good indication of these costs, and can often recommend qualified real estate agents, lawyers, home inspectors and other professionals that you will need during the home buying process.

So when shopping for a home, you do not need to "go it alone". Enlisting the free services of a mortgage broker can help put an informed professional on your side.