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Pourquoi faire une préapprobation ?

Before you start looking for a new home, it is important to check if your financial situation allows you to obtain a mortgage.To make your process more reliable and buy a property suited to your budget, a mortgage pre-approval is necessary.This means that a lender confirms in writing that you are eligible to take out a mortgage for a given amount and interest rate after reviewing your financial information.However, this commitment does not guarantee that the mortgage will be obtained, as circumstances may change between the time of pre-approval and the time of purchase of the property.Mortgage pre-approval allows you to target your search and see only the offers that fit your budget.It also helps the real estate broker find the best homes in your price range.In addition, it allows you to gain credibility in the eyes of real estate agents and all those involved in the buying process.

Pre-approval strengthens your bargaining power with sellers because it confirms that you are a serious and reliable buyer.

It is important not to confuse pre-approval with pre-qualification, which is a preliminary assessment of the lender's financial situation based on the information they provide without checking the credit file.A mortgage pre-approval has the same purposes as a pre-approval, except that it certifies that the financial institution is committed to granting you the loan.

Mortgage pre-approval is offered by lenders and mortgage brokers such as banks, credit unions, credit unions, mortgage companies, trust companies, insurance companies and other financial institutions.It is advisable to contact several lenders to find the one that meets your needs.

To obtain a mortgage pre-approval, a mortgage broker or a mortgage advisor will guide you through the process.It explains what a mortgage loan is, offers you various options and asks you for some financial information concerning your job, your income, your down payment, your liabilities, etc.The lender checks your credit file with a credit reporting agency, either Equifax or TransUnion.

Pre-approval is subject to your continued creditworthiness, for a period of 60, 90 or 120 days, depending on the lender.Mortgage pre-approval offers you several advantages during the process of buying a new property, including saving time, guaranteeing interest rates, organizing your budget, and no obligations.

To obtain a mortgage pre-approval, you must submit an application with a mortgage broker or lender.They will assess your eligibility based on different criteria such as your credit rating, down payment, debt ratio and other supporting documents such as proof of identity, employment and income.It is important to note that your credit rating plays an important role in your eligibility for a mortgage loan.If your credit score is above 680, you can get a mortgage from an "A" grade creditor, such as chartered banks.If your credit score is between 600 and 680, other details are considered to determine if you qualify for a loan from an "A" or "B" grade creditor.If your credit score is below 600, you can only access a "B" grade lender and you will get a high mortgage rate.

Also, you should plan for additional costs that come with buying a home, such as closing costs, property taxes, moving costs, ongoing maintenance costs, and unexpected expenses.You should not use the maximum amount of the pre-approved mortgage and instead target properties that are priced below the maximum loan.

It's also important to protect your mortgage pre-approval by not applying for new loans, closing credit accounts or making large purchases before buying a property.

Finally, it is recommended that you choose an eligible property that meets the creditor's criteria to avoid having your pre-approval canceled.If you have questions or need help getting pre-approved for a mortgage, you can talk to a mortgage broker.They can assess your financial situation, improve your credit rating, refinance your mortgage, estimate mortgage rate trends, compare offers from several financial institutions and access federal and provincial financing programs.

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