Mortgage Pre Approval
Looking for a Mortgage Pre Approval in Toronto or the GTA?
Before you start your house-hunting process, there’s a few pertinent steps you can take to save time and money, and make your overall home buying process smoother. Getting a mortgage pre approval ultimately determines the house price you can afford, which lets you budget for your home purchase and begin searching for your new dream home.
Contact your Simplify Mortgage Solutions Team for a free consultation to guide you in this entire process of mortgage pre approval.
How Mortgage Pre Approvals Work
Getting a mortgage pre approval is a tentative promise from a lender that they’ll loan you a certain amount of money to purchase real estate, for a certain term and set interest rate. A good rule of thumb to remember is that, your total housing costs (mortgage payment, taxes and heating expenses) shouldn’t go over 39% of your gross, monthly household income. This should also give you a rough idea of the amount of funding you may be approved for.
What Does a Mortgage Pre Approval Include?
- The maximum amount you can spend on a home
- An idea of how much you can borrow
- What your monthly payments will look like
- What your mortgage rate is for your first mortgage term
Applying for a mortgage pre approval is free and doesn’t commit you to one single lender. However, once you’re pre-approved it does guarantee that the mortgage rate offered won’t change during the 90 or 120 day mortgage pre approval period with us. By locking in your rate, you are protected if interest rates rise while you’re out house hunting. In the case that interest rates lower during this time, we will honor the lower rate.
If you’re ready to begin your mortgage pre approval process. Or, if you have special circumstances which may make pre approval difficult, contact Simplify Mortgage Solutions Team to discuss how we can help you find financing that meets your specific needs!
