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All About Mortgage Pre-Approval – Must Know Before Buying A Home In Ottawa

buying home in Ottawa

Buying a home in Ottawa is an exciting thing to do. You may have been dreaming for years about owning a home and finally, everything is falling into place. However, the process of buying a home is not that simple. There are a lot of things to deal with. One major thing that you have to deal with is mortgage pre-approval. Contact us for more details and queries.

Is Mortgage Pre-approval Necessary When Buying A Home in Ottawa?

If you feel that you are financially ready to own a house, you can start working on qualifying for a mortgage. The very first step that you need to do is to get a mortgage pre-approval. You can get pre-approval from a qualified lender. Contact us for more details and queries.

What will the lender look for when evaluating if you are qualified for a mortgage pre-approval? The lender will look at your credit score and income stability. They will look at your employment status. This is necessary so they can determine your capacity to pay for the mortgage.

What To Expect With Mortgage Pre-approval?

During the pre-approval process, the lender will be able to determine the following:

• maximum amount that they can lend you
• Interest rate for the amount approved for you
• Monthly payment required for the mortgage

With mortgage pre-approval, the lender may be able to lock you in for up to 120 days. This period will allow you to be able to find your dream home and close a deal with the financial assurance that you have a mortgage to pay off your home. Not all lenders will offer lock-ins so be sure to talk to your lender about this option beforehand. The good thing about having a lock-in period is that you can shop around for different home offers with peace of mind. Contact us for more details and queries.

Why Get Mortgage Pre-approval When Buying A Home In Ottawa?

The advantage of having a mortgage pre-approval when buying a home in Ottawa is that you give the seller the assurance that you are serious about your purchase. It gives both you and the seller peace of mind that you can pay for the home in case you reach a purchase agreement.

If you are not the only interested buyer of the home you are eyeing, it pays off to have a mortgage pre-approval to back you up. You have a better chance of getting the contract compared to other buyers without mortgage pre-approval.

As a serious homebuyer, you must look into the option of having a mortgage pre-approval if you want to be able to search for your dream home without worry. Contact us for more details and queries.