If you're looking to purchase a new home in Calgary, mortgage preapproval can save you time and help you avoid hassles during the house-hunting process. And with a 120-day hold on interest rates, you can avoid rising costs if rates go up while you're searching for your perfect new home.
What is Mortgage Preapproval?
Mortgage preapproval allows you to shop smart when looking for your new home in Calgary. Getting preapproved for a mortgage is not the same as prequalifying. Many financial institutions will offer to prequalify you for a certain amount, but they may not look too closely at the details. They will consider how much you make and how much you owe, but some lenders may not delve any deeper than that. This can lead to unpleasant surprises that could end up costing you your dream home.
While mortgage preapproval is not a guarantee, First Foundation will look at your unique situation much more closely. Not only do they consider your income and debts, but they will also take into account things like your credit history, future plans and the type of work you do. This means that your broker has a much better idea of what sort of loan you'll be able to qualify for, and your home-buying process will go much more smoothly.
Home Buying is Easier with Mortgage Preapproval
One of the main advantages of mortgage preapproval in Calgary is the ability to lock into the current interest rates for up to 120 days. Once you're preapproved, you can start shopping for your new home, secure in the knowledge of the deal that you'll be getting. This protects you if interest rates go up while you're looking for the perfect new house, because the hold means you can still get your mortgage at the rate offered to you during the preapproval process. And you may even qualify for a lower rate once you're actually ready to buy your new home.
Not only do you get the peace of mind of having a 120-day rate hold, but mortgage preapproval can make the home-buying process go a lot more smoothly as well. Some realtors may not even want to work with you unless you have preapproval for your mortgage, since they don't want to waste their time showing you homes you cannot afford. With mortgage preapproval in Calgary, you enter the home-buying process armed with much better knowledge about the mortgage you can afford.
Even if you aren't yet ready to buy, a mortgage preapproval or consultation with First Foundation can tell you what you need to do in order to get your finances in shape to be able to purchase a home. We'll tell you what kind of debt you need to pay down and how much you should be saving. First Foundation is your partner every step of the way.
To learn more about mortgage preapproval and whether it's right for you, contact First Foundation today.