Mortgage Pre-Approval Guide

Getting a mortgage pre-approval is one of the most important steps you can take early in the process. It not only helps you understand your budget and price range, but it also allows you to lock in an interest rate for a set period, which could save you thousands of dollars over the life of your loan.

Here are 4 simple steps to guide you through the mortgage pre-approval process:

1. Speak with a Mortgage Specialist.

Whether it’s through your bank or an independent mortgage broker, connecting with a specialist will help you navigate the many options available. They’ll assist you in comparing rates and terms, ensuring you choose the right mortgage product for your needs. The Baird Team has access to trusted mortgage brokers and mortgage agents for each of the major big banks.

2. Complete the Application Process

This will determine your eligibility for a mortgage based on several factors including your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios. These calculations help determine how much you can comfortably afford, taking into account your income and existing financial obligations. This is an important step to understand what will be your budget, and will help to determine what homes you should be searching for.

3. Gather the Requested Financial Documents

To finalize your pre-approval, you’ll need to provide documents such as proof of income, proof of other assets and verification of your down payment. Your mortgage professional will guide you on exactly what’s needed.

4. Lock In An Interest Rate

Mortgage rates can fluctuate, so locking in your interest rate is crucial. Having a pre-approval letter not only secures your rate but also gives the seller confidence in your ability to close, giving you a competitive edge in the market.

Be sure you are getting a pre-approval not just a pre-qualification. There is an important difference. If you have questions or would like us to recommend a trusted Mortgage Specialist, feel free to The Baird Team with Royal LePage Frank – we’re happy to assist!

Learn more about The Baird Team’s process for buyers here!

Looking to estimate your mortgage payments before beginning the formal process? Use this mortgage payment calculator from CMHC: click here.