Step 1 to buying a home: your mortgage pre-approval – by Kerri Doepker
April 06, 2021
You’ve decided to buy a house – how exciting!
There are a lot of steps involved in buying a home, from house-hunting to packing those moving boxes. The one thing you should always start with is getting a mortgage pre-approval. Whether you’re buying your first home or your fifth, this is an important first step.
What is a mortgage pre-approval?
A pre-approval is a commitment from your financial institution (like Sunova) to lend you a certain amount for your mortgage at a particular interest rate.
When you get pre-approved for a mortgage, you’ll find out the maximum amount you can afford to spend on a home, the monthly mortgage payment associated with your max purchase price, and what your mortgage rate will be for your first mortgage term.
With that information in hand, you’ll know what you can afford and avoid looking at places that are out of your price range. No one wants to fall in love with a house, only to find out you can’t afford it. Another perk to getting pre-approved is when you’re ready to make an offer, the financing should be in place a lot quicker than starting from scratch.
When Sunova is considering a pre-approval, we complete an in-depth review of your financial position. This includes looking at your credit score, discussing your down payment requirements, and determining your debt service ratio (your monthly expenses compared to your monthly income).
Ready to get pre-approved for your home purchase?
If you’re ready to start on your pre-approval or have questions, it’s time to reach out to a lender. You can reach out to me at the Dugald branch, or one of my co-workers over the phone or email, or stop by a branch near you to meet a lender in person.
It’s important to be comfortable with the lender and the mortgage options that are being offered to you, right from the start. We’re looking forward to meeting you and helping you get into your next home.
A few questions to ask your lender when getting pre-approved
- How long is the pre-approved rate guaranteed for?
- Will you automatically get the lowest rate if interest rates go down while you’re pre-approved?
- If you don’t find a home to purchase right away, can the pre-approval be extended?
Hi, I’m Kerri. I have been working within the credit union system for five years and have expanded my knowledge to help you with your financial goals. I grew up in Pine Falls and moved to Winnipeg in 2015. Working in our Dugald branch has helped me get back to my small-town roots and build personal connections with our members. In my spare time, I travel to Pine Falls to visit my family, or Arborg to visit my fiancé’s family. I enjoy heading out to my family cabin in Traverse Bay to get out on the trails for some four-wheeling or to relax on the deck with a good book (usually by Tarryn Fisher).