What is a Mortgage Pre-Approval?

If you've been thinking about getting a mortgage then you've probably heard about a mortgage pre-approval, but what is it?

In simple terms, a mortgage pre-approval tells a buyer what purchase price they can afford for a house. When thinking about getting a mortgage it's important to know that not all mortgage pre-approvals are made the same! Some banks and lenders will not review documents or credit until an offer is made and therefore the pre-approval can be revoked.

A mortgage pre-approval done by Gert Martens Mortgage Team includes a complete review of the entire mortgage application. Our Grande Prairie mortgage team reviews credit, income, and debt to give buyers confidence when house shopping!

Why get a mortgage pre-approval?

A mortgage pre-approval is good for many reasons including:

-Giving a buyer a clear house budget. This can prevent buyers from falling in love with a house that they can't afford.

-Shows the seller that the buyer is serious. A seller doesn't want to accept an offer and have their house off the market if a buyer can't afford it. A seller is more likely to accept an offer from a pre-approved buyer.

-Allows financing to go quicker. With a pre-approval in process the time from offer to an approved file can be quicker as majority of the document and file review have already been completed.

-To hold an interest rate. Interest rates have been more stable in recent months but when they were changing drastically, a pre-approval allows an interest rate to be held for up to 120 days.

If you are ready to start your home buying journey our experienced mortgage team would love to help!