Now that we are officially in the spring season, that means we are approaching the peak time to buy a home. Most home buyers wait until spring to purchase a house because that is when the real estate market is most active.
As a first-time homebuyer, you should start preparing all the pertinent documentation and getting your finances in order. Make sure you schedule an appointment with your mortgage broker in Alberta so they can walk you through the application process.
So, to help you get started, Gert Martens with Dominion Lending Centres has explained what exactly a mortgage pre-approval letter is and if one is required to make an offer on a home.
What Is A Mortgage Pre-Approval Letter?
A mortgage pre-approval letter is when your broker reviews all your financial documentation and will run a credit check on your finances to see what your debt-to-income ratio is. This will help them determine how much you would be able to borrow for your Alberta mortgage.
Now you do not need a mortgage pre-approval letter in order to put an offer on a house, however, there are many benefits that come with getting pre-approved.
Benefits Of A Pre-Approval Letter
As mentioned above, your mortgage broker will review your financial documents and let you know how much you’ll be able to borrow. This means you will know what price range to shop in once you start viewing different houses. Knowing this can save you time so you don’t view a home outside your budget.
Another benefit of receiving a pre-approval letter is that it gives you more credibility with sellers. This letter shows sellers that you are financially fit enough to become a homeowner, which means they will be more likely to choose your offer over someone who has not been pre-approved.
If you would like to learn more information on the benefits of receiving a pre-approval letter or if you are looking to apply for an Alberta mortgage, please contact Gert Martens with Dominion Lending Centres at 780-933-0109.