Pre-Approved Mortgages Gives a Head Start to First-Time Home Buyers

Emma and Josh were devastated. They thought they had saved enough and the home they loved was just a little out of their budget. But when their offer was accepted and they went to their bank for financing, they were declined.

If only they had taken the time to sit down with a mortgage specialist before they started their search.

Our mortgage specialists know the challenges for the first-time home buyer in a tough market. We start by listening to you, understanding your unique situation. Then we walk with you through each step of the home buying process.

A mortgage pre-approval is a crucial step. It provides a clear understanding of your borrowing capacity. We’ve put together a few key points on mortgage pre-approvals, the process and the benefits for you.

What Does a Mortgage Pre-approval Mean for You?

Mortgage pre-approval is a formal evaluation by a lender that determines how much money a borrower can borrow based on their financial situation. This process involves a thorough review of your credit history, debts, debt repayment, employment history, income, and assets.

Unlike pre-qualification, which offers a rough estimate, pre-approval is a more accurate assessment of your financial readiness to purchase a home. Your pre-approval is a conditional commitment from the lender.

Steps to Get a Pre-approved Mortgage

You can jump start the process by completing the mortgage pre-approval application online. Once you’ve submitted the form, we’ll call you to schedule a meeting. Your mortgage specialist will walk with you as you navigate the journey to home ownership.

To process your application, the mortgage specialist will ask for:

• Proof of income
• Tax returns
• Bank statements
• Details of assets and debts

A pre-approval is an important first step to purchasing a home and should be considered before you start a relationship with a realtor.

Benefits of Getting a Pre-approval Before Buying a Home

Obtaining a mortgage pre-approval gives you confidence as you search for your dream home. Here are a few of the advantages of getting a pre-approved mortgage:

1. Set a clear budget:

   Together with your Northern Birch mortgage specialist, you can identify the price range available to you as you search for your dream home. The mortgage specialist’s experience helps outline the full costs of home ownership. They help you stay within a healthy financial range of debt for your unique circumstances.

2. Lock in Your Interest Rate

   Northern Birch locks in the most competitive interest rate for 130-days*. If the rate goes up during that time, we honour your pre-approved rate. If the rate goes down, we adjust the rate to your benefit. It’s a win-win for our members.

3. The Power to Negotiate

   Your pre-approval document lets your Realtor know you are a serious buyer. They know you already have the financing in place to purchase a property, giving you an edge in negotiations.

4. Quick Closing Process

   Much of the paperwork associated with your mortgage is done in the pre-approval stage. With that done, the approved mortgage can be expedited.

A pre-approved mortgage is a smart and essential step for prospective home buyers. It provides clarity as you look for your dream home. Northern Birch helps you navigate the home buying process with confidence.

Northern Birch Credit Union supports you on your journey towards financial well-being. The information in this article is provided as an educational overview. Each member’s financial journey is unique. We encourage you to talk to us – we can help you reach your financial goals.

*Offer subject to change at any time. Terms and conditions may apply. Visit our website for details.