“Lets start at the very beginning, a very good place to start- when you read you begin with ABC”  when you shop for a home you start…

With a pre-approval!

Julie Andrews sang it best— to begin your homeownership dream; getting all your ducks in line is crucial to the success of your financing.

There can be an overconfidence in a pre-approval, so its important to understand what it is AND what it isn’t.

Pre-approvals are not a guaranteed approval—they are also non binding. Think of it as a pre-screening, over 4 of the 5 C’s of credit: character, capacity, capital, and conditions. The 5th C, collateral (the property itself), is examined during the formal approval process. In short, a pre-approval gives you a clear picture of your financial strengths and areas to address before you make an offer.

A pre-approval is helpful because:

  1. Clarifies your budget,  estimates a monthly payment. and explains key steps in the mortgage process.
  2. Ensures you gather all required documents so any potential obstacles can be addressed early.
  3. Provides complete review of your income, down payment, financial history and debt servicing ratios.
  4. Strengthens your position when making an offer; sellers prefer pre-approved buyers.
  5. Allows a rate hold for up to 120 days while your shop, protecting you from rising interest rates.

We do our pre-approvals in 4 clear and comprehensive steps:

  1.  Introductory Call– this is about 15-20 min. In this phone call we will find out more about your situation, so that we can provide insight and the next steps.
  2. Application– this is our intake form. It is a user friendly online application that you can use on a phone, tablet or computer
  3. Document collection– these will be specific to your application, which we will request when we sent out the application link. We have invested in a secure portal for you to provide your documentation safely and conveniently.
  4. Meeting to Review your options and go over your purchasing power.

We will then provide you with a pre-approval letter and you can start house hunting with confidence.

Before you go out shopping- be sure to give Mortgage Sisters West a call. We love setting up our clients with success and we can’t wait to work with you!

We are mortgage brokers and serve all of Alberta, with a focus on our local Edmonton, Sherwood Park, St. Albert, Fort Saskatchewan, Spruce Grove, Stony Plain, Beaumont, Leduc and surrounding areas!

We are franchised with our National Brokerage— Mortgage Architects, and can broker your mortgage in other provinces as well. We would love to work with you!