Before you start house hunting, it’s important to know how much home you can afford by completing an application for a pre-approved mortgage. This process will save you time and give the opportunity to plan, discuss loans and budgeting options as well as aid in the negotiating process when it comes time to writing an offer.
Pre-approved mortgage benefits:
• It’s a free service from the bank or mortgage broker of your choice
• You know how much your monthly payments will be
• You know exactly how much of a home you can afford
• You know the interest rate
• There’s no obligation to use the bank that pre-approved you
• You are protected against interest rate fluctuations. This means, your interest rate may be guaranteed for up to 120 days. During this time, if interest rates decreases within these 120 days, your rate will automatically be lowered.