Before you start shopping for a home, it is always best to meet with a lender to ensure you are prepared and educated about financing the purchase of your home and details about home ownership. There are many things to understand, such as: rates, terms, mortgage types, fees, premiums, and the process of approval through to closing. Whether you are a first time buyer or a repeat buyer, it is always good to have your financing in order before meeting with your REALTOR®.
Pre-approval Benefits of Home Ownership
Pre-approvals are generally one appointment, that requires your most recent pay-stub and previous years T4 slip if employed and if self-employed you will need your past 2 years Notice of Assessment and T1 General.
This pre-approval will guarantee your rate for up to 120 days, meaning if rates were to rise, you are guaranteed the rate you were pre-approved at. It also provides you with confidence to know what amount you can shop up too, and not be disappointed when putting in an offer that was higher than you could afford. Your RBC pre-approval, comes with a letter that shows both the seller of the home and REALTOR® that you are a serious buyer. This also ensures you are not wasting your time or the time of the REALTOR® and seller. Time can be important when the housing market is hot. You don’t want to lose out on an opportunity because your homework wasn’t done.
Prepare For The Unexpected
The most important part of the pre-approval is that it prepares you for the unexpected. Sometimes credit bureaus can have errors that need to be fixed, you may have forgotten to pay some bills in the past, you may be short on down payment savings, or you may need longer tenure for your job. Meeting with your lender will help determine if you need a strategy to get to the approval stage. Your mortgage pre-approval will bring you piece of mind, that you are ready and have everything you need to make the offer on your dream home. It avoids unforeseen circumstances and allows you information, advice and confidence to meet with your REALTOR® and begin the process of shopping for a home.
The home ownership process should be educational, exciting and stress free. If you are looking for some great advice, talk to someone with 20 years of experience helping clients with their home equity needs. Being mobile makes it easy to meet with you at your convenience. Evening and weekend appointments are also available.