Before going out with your realtor to shop for homes, it is crucial that you understand what you can afford in the eyes of lenders.

A pre-approval is when a lender states in writing that you have qualified for a mortgage loan of a certain amount, based on your income and credit history, and that they are willing to give you a loan.

This will benefit you in more than one way on your home search journey. Firstly, you wil be able to put in a stronger offer with less conditions which will help your offer stand out in a hot market. Secondly, you will not get disappointed by trying to purchase a home out of your price range and will have realistic expectations going into the process.

We always advise our clients to get a preapproval before starting the home search. If you are looking for advice on what mortgage broker to use, ask us! We know many qualified brokers that can help you with this process.