Even in a non-competitive market, getting pre-approved is a great way to know how much you can afford. This extra step in the home buying process will help you go in at offer time feeling confident, full of peace of mind and with your best foot forward.
The pre-approval process is very straightforward too. Once you select your lender, you will fill out a loan application and provide information regarding your credit, debt, work history, down payment and residential history.
From there, the lender will determine the amount you will be qualified to borrow based on:
- Capacity: Your current and future ability to make your payments.
- Capital: The money, savings and investments you have.
- Collateral: The home you want to purchase.
- Credit: Your history of paying bills and other debts on time.
Once you know how much you can borrow, this will help you stand out against other buyers vying for properties in the ever-competitive Mississauga real estate market. It also shows sellers that you are serious about buying their home, which can certainly work in your favour.
To learn more about getting pre-approved for a mortgage loan and to receive lender recommendations that you can trust, contact me, Deborah Clerk, at Keller Williams Real Estate Associates, Brokerage, in Mississauga, Ontario, for details.