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Before viewing homes, ask a lender or mortgage broker about mortgage pre-approval. This early review of your finances helps estimate the mortgage you may qualify for and plan your home search. It does not guarantee final mortgage approval.

STEP 01 — UNDERSTAND PRE-APPROVAL

A lender or mortgage broker reviews your income, debts, and down payment to estimate how much you may be able to borrow. Depending on the lender, they may estimate your payment and hold an interest rate for a limited period. Ask which documents have been verified, how long any rate hold lasts, and which conditions apply.

A possible maximum mortgage is not necessarily the right purchase budget. Choose a monthly payment that fits your household after property taxes, insurance, utilities, condo fees if applicable, and repairs.

STEP 02 — GATHER YOUR DOCUMENTS

Requirements vary by lender and applicant. You may need:

01. Identification.
02. Employment information and income proof, such as recent pay stubs.
03. Bank statements, savings information, and proof of your down payment source.
04. Details of debts, such as credit cards, car loans, or student loans.
05. Funds for closing costs in addition to your down payment.

If you are self-employed, the lender may ask for additional tax and financial documents. Request a checklist tailored to your situation.

STEP 03 — ASK SIX IMPORTANT QUESTIONS

01. Is this based on documents you have verified, or is it an initial estimate?
02. How much might I qualify to borrow, and what could the monthly payment be?
03. How long is the interest rate held, and what conditions apply?
04. How much money will I need for the down payment and closing costs?
05. Could changing jobs, losing income, or taking on new debt affect the result?
06. When I find a home, what documents and steps are needed for final approval?

STEP 04 — KNOW THE LIMITS OF PRE-APPROVAL

After an offer is accepted, the lender still reviews your current finances and the specific property. Its appraised value may differ from the purchase price. Changes in employment, income, credit, or debts may also affect the final lending decision.

Before making an offer, discuss a financing condition with your lender and REALTOR®. Do not waive it simply because you have a pre-approval without understanding the risk.

STEP 05 — PLAN YOUR HOME SEARCH

Decide on a monthly payment that feels comfortable, choose your preferred areas, and list your must-haves. For the full buying process, see my step-by-step guide to buying a home in Edmonton.

I help buyers throughout Edmonton, especially in North Edmonton, from planning a search through viewing homes and preparing an offer. Confirm your mortgage terms and qualification directly with your lender.

CALL CHRISTY: 780-932-8190

Christy Tien Le, REALTOR® | eXp Realty
christytien.le@exprealty.com

Sources: Financial Consumer Agency of Canada and Real Estate Council of Alberta. Requirements vary by lender and applicant.