When you’re house hunting, there’s so much to consider. You want to find a home that will meet your family’s needs in a nice neighbourhood with good schools and convenient shopping. Looking for a house you’ll love can be exciting and time-consuming.

To make the journey easier, take the time to seek pre-approval for a mortgage loan. You’ll find that this one step has a number of advantages. Here are the main ones:

Provides assurance

It can really be helpful to know ahead of time the full amount of a mortgage that you qualify for, and what your monthly payments will be. Certainly, you may find a great property for under that amount and end up borrowing less money. However, knowing the parameters provides you with the assurance you need to go out and view homes within a particular price range. 

Lock in the best rate

One of your goals in setting up a mortgage should be to find the best rate. Why pay more interest than you have to, right? When you shop for a mortgage ahead of viewing houses, you can take the time required to find a good deal. Your mortgage pre-approval will last from 60 to 130 days, depending on the lender, and that means you’ve basically locked in the rate for that period of time. You don’t need to worry about interest rates going up while you’re viewing properties.

Better purchase position

When you have a pre-approved mortgage, you’re often in a better bargaining position compared to people who don’t have this. It means that you can act more quickly when making an offer on a property. You already know the maximum amount you qualify to borrow, so you understand how much flexibility you have in negotiating a good price. Plus, the seller knows that you have solid financial backing so may be more inclined to work with you on your offer.

No surprises

Taking out any loan, of course, requires a credit check. If you haven’t borrowed for another reason recently and aren’t in the habit of checking your credit rating regularly, it can be difficult to know where you stand. Going through the process of mortgage pre-approval helps you uncover any surprises that could derail your efforts to buy your dream home. It could be that there’s some incorrect information in your credit history that needs to be set right.

Are you interested in acquiring a pre-approval on a mortgage loan? Reach out to me and I will gladly put you in touch with several of the best lenders in Calgary.