Why it's Smart to Get Pre-approval
By Tisha McKenna
Royal lePage Benchmark
One of the best ways to determine how much you can afford is to get a "pre-approved mortgage."
When you're ready to begin your home search, you will need to determine what you can afford, based on your income, expenses and other debts. Woking with your mortgage broker or bank will allow you to be pre-approved for a set mortgage amount at an interest rate that's usually guaranteed for 90 days.
Getting pre-approval is not a formal application for a mortgage, and it does not obligate you in any way.
A pre-approved mortgage simply gives you a better idea of how much you're qualified to borrow and helps to ensure that your monthly payments will be affordable.
It also helps make finding a home easier because you can limit your search to those houses you know you can afford.