A pre-qualification is the first step in uncovering what you can afford when embarking on the search for your next property.  It should outline a realistic budget, including the costs to complete the purchase, including legal fees and applicable taxes, as well as estimated ongoing mortgage payments.

To arrive at an accurate budget and to move quickly once you find your perfect property, you’ll need to submit comprehensive documentation describing your current income amongst other details in advance.

A pre-qualification gives you an understanding of the maximum amount you can comfortably spend on your new home.  Armed with this knowledge, you can confidently search for properties within your price range.

At times it may make sense to lock in a favorable interest rate for a specified period (typically 90-120 days) allowing you to explore the market without worrying about potential interest rate fluctuations.

Once you receive your pre-qualification terms, it’s important to maintain the same financial picture until your mortgage is finalized.  Significant changes, such as switching jobs, making large purchases, or opening new credit cards can impact your final mortgage approval.

If you’re ready to see what you might qualify for, please don’t hesitate to ask, I am always happy to see how I can help.

Adapted from DLC Marketing

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