Saskatoon Mortgage Preapproval
The traditional way to look for a house is to check out the listings, find the house you want, and then try to get a mortgage so you can put in a bid on the property you want. There are a few flaws with this traditional model, not the least of which is that homebuyers can misjudge what they qualify for and end up disappointed. Getting a mortgage pre-approval before you purchase your Saskatoon property can help you get the best house you can for your money, and not miss out on any opportunities.
Mortgage Pre-Approvals Help With Saskatoon's Hot Housing Market
While real estate sales mostly dipped in the rest of Canada in 2012, Saskatoon's real estate market is only seeing growth. The one thing you can count on in a hot real estate market is competitive bids for desirable homes. It goes without saying that knowing how much money you qualify for and being able to submit a bid quickly may mean the difference between getting and not getting the home you want. A First Foundation mortgage pre-approval locks in your mortgage amount and rate for 120 days to give you time to shop around. Four months is usually more than enough time to find the home you want in Saskatoon.
The Difference Between a Pre-approval and Prequalification
A bank will typically prequalify you for a mortgage, a process which involves you telling them your income and your debt level. The problem with a prequalification is that it isn't enough to guarantee that you will actually get the mortgage when you apply. That, and you may be waiting precious days to apply after a prequalification, while you won't be waiting if you've been preapproved.
Don't be fooled into thinking you can qualify for a mortgage when you can't. Make sure you know exactly where you stand! Contact us Anytime, we would love to help you figure it out.
A preapproval involves much more detailed questions involving your credit rating and the ability to pay a mortgage alongside of existing debt. A pre-approval is the best way to make sure you will be approved for a mortgage when you find a property you want to purchase. Although a pre-approval doesn't guarantee an approval, it is the best place to start and will clear most obstacles ahead of time.
What You Need for a Successful Pre-Approval
If you want to make sure that the process goes smoothly, make sure you have the following information before you come to us for a mortgage pre-approval for a Saskatoon home.
- full accounting of all debt including car loans, lines of credit, credit cards
- as much income history as you can provide, preferably the last 2 years of your tax returns
If your pre-approval is not successful, we'll tell you exactly why and what you need to work on to be more attractive to lenders. It's a great idea to get a pre-approval when you are first thinking about purchasing real estate to see what areas you need to work on. For many people, it is the debt-to-income ratio that needs work, so paying off high-interest debt first will put you in a better position.
Contact First Foundation today to get a mortgage pre-approval before you start looking for your home in Saskatoon.