The Mortgage Pre-Approval Process

Starting the journey to homeownership often begins with a mortgage pre-approval. This process can feel overwhelming, but our Grande Prairie Mortgage Broker team walks you through the entire process, saving you time, stress, and improving your chances of approval!

What Is Mortgage Pre-Approval?

A Mortgage Pre-Approval can look different depending on where you are getting it. Some banks and Mortgage Brokers enter basic information into their system and it shoots back an automated mortgage "pre-approval" amount without any documents or follow-up questions. With Gert Martens Mortgage Team we do an in-depth pre-approval. This means that we collect and review employment documents, pull your credit, and review debts. This thorough file review ensures that when you're given a pre-approved mortgage amount you can house shop in confidence.

Why You Should Get Pre-Approved Before House Hunting

Many homebuyers skip pre-approval and start looking at homes right away. That can lead to disappointment and heartbreak for you as you might be house-shopping outside of your mortgage budget.

Reasons why we love pre-approvals:

• You’ll understand exactly how much you can afford, meaning no wasted time for you, your Realtor, or the Seller

• Negotiation power. It gives Seller's confidence knowing that your offer is serious as your financing has already been reviewed.

• Faster closing: Since much of the paperwork is done upfront, the mortgage approval process speeds up once you find a home.

• Interest rate hold: We can lock in an interest rate for a period during pre-approval, protecting you from rate increases.

  
  

How to Get Mortgage Pre-Approval in Alberta

We make the process easy! Here’s what you can expect:

1. Gather your documents

   • 2 most recent pay stubs

   • Employment letter

   • Tax returns (if self-employed)

   • 2 years of Business Financials (if self-employed

   • Identification documents

   
   

2. Submit an Application. You can easily do this online through our website or app.

   
   

3. File Review

   Our team will review your documents and application. We will also check your credit score and assess your debt-to-income ratio to ensure there are no surprises on your file.

   
   

4. Receive your pre-approval letter

   This document states the loan amount, interest rate, and conditions. It’s is usually valid for 120 days.

   
   

Keep in mind that pre-approval is based on your current financial situation. If your income changes or you take on new debt, the lender may need to reassess.

What Lenders Look for During Pre-Approval

Lenders look at everyone as a risk and they are trying to weigh out how big of a risk a person is before deciding to loan money. They focus on:

• Credit score: A higher score improves your chances of approval and better rates. In Canada, a score above 680 is generally good.

• Income stability: Lenders prefer steady employment or consistent income sources. If you are new to your job they like to see guaranteed income or extended time in the same field of work.

• Debt-to-income ratio: This compares your monthly debts to your income. Most lenders want this below 40%.

• Down payment: The size and source of your down payment affect your mortgage amount.

• Property type: Some lenders have restrictions on certain property types or require additional checks.

Tips to Improve Your Chances of Mortgage Approval

If you’re planning to apply for mortgage pre-approval in Canada, here are some practical tips:

• Check your credit report before applying and fix any errors and payoff any collections.

• Avoid large purchases or new credit applications during the pre-approval period.

• Save for a larger down payment

• Keep your employment stable and avoid job changes right before applying.

What Happens After Pre-Approval?

Once you have your pre-approval letter, you can start house hunting with confidence! When you find a home you want, you can make an offer. After your offer is accepted our team will complete the final mortgage approval. This can include:

• Ordering a property appraisal to confirm the home’s value

• Final verification of your financial documents

• Signing the mortgage agreement

  
  

If everything checks out, you’ll receive a mortgage commitment and remove conditions. Once possession day comes you'll officially become a homeowner.

Do I need a Mortgage Pre-Approval?

A mortgage pre-approval is not mandatory but can save you a lot of time, disappointment, and money. It helps you understand your budget, strengthens your offers, and speeds up the buying process.

Contact Gert Martens Mortgage Team today to begin your mortgage pre-approval process today!