There is a practice called mortgage pre-approval, and it comes with many benefits. It can also pose a few risks. Although the topic is vast, and can hardly be covered in its entirety on the span of a single article, we will attempt to give you a detailed examination of those considerations.
Let’s first examine the “traditional” way of getting a mortgage approval.
There is another way to do this, however. One that may expedite the closing process and save you the risk of finding a property only to take too long securing the loan. This delay may give another buyer the advantage and lose you the opportunity to purchase the property of your choice. The way to avoid it is to go for mortgage pre-approval.
What is Mortgage Pre-approval?
Mortgage Pre-approval determines the property price range that you can afford. It helps narrow down the home search and allows you to budget for it. Once you have a pre-approved loan, you will also waste no time on the home search, as you will be shopping only within your pre-determined budget. Once you get pre-approved for a mortgage, you will be able to cross all the t’s and dot all the i’s. Here are a few important benefits:
Another good thing about the process of pre-approval is that it is completely free and does not commit you to a single lender, while guaranteeing that the rate will not change in the next 120-160 days. Locking into the mortgage rate, you are protected from rising interest rates, a problem that we all know too well in Montreal and other provinces, where Mortgage rates can change drastically from one month to the next.
Now that this is established, let’s give you some more advice that will help you make a prudent choice and save you from possible mistakes:
We hope you found this information helpful. Feel free to contact us at Best Mortgage Montreal for more information and assistance in finding a good mortgage rate in Quebec and Montreal area. We are here for you.