Buying a home is one biggest financial decisions you can make. It includes thinking about location, affordability, a mortgage term and rate and a few other things. You will also need to deal with a real estate agent, a lender, a lawyer and the seller, among other people. It can be both exciting and stressful. Fortunately, there are a number of tools that can make the process of buying a home a little more enjoyable, one of which includes a mortgage pre-approval.What is a pre-approved mortgage?When you plan to buy a home you want to secure a mortgage amount at a guaranteed rate (for fixed-rate mortgages). In order to do this you need to know your credit score, provide proof of down payment, assets and job details. Many banks will help you find out if you are allegeable for a mortgage (based on the information they have and you’ve provided). These terms are subject to change and nothing is set in stone until you make a purchase.What is your budget?Knowing your budget allows you to shop confidently and provides the security of negotiating a house price that falls comfortably within the budget. Having your mortgage financing arrangements in place indicates that you are a serious buyer.In order to purchase a home you will need the following items:
- Personal identification, for example: driver’s license
- Details of your job, in letter form, from your employer that includes confirmation of salary
- Any other sources of income
- Information and details on all bank accounts, loans and other debts
- Proof of all financial assets
- Source and amount of down payment and deposit
- Proof of source of funds for the closing costs (these are usually 1.5% of the purchase price)
- T1 General and Notice of Assessment for the last 2 years.
Knowing what you can afford makes buying a home less stressful and more enjoyable. Before shopping around and falling in love with a home, make sure you know how much you can afford, shop around for the best rate and enjoy the experience.For more information contact Anat Papp today!Anat Papp, Sales RepresentativeGreenfield Real Estate Inc, BrokerageIndependently Owned and Operatedmobile: 416-712-6807phone: 416-226-1020fax: 416-398-1021http://AnatPapp.com *Advertorial*