Mortgage Pre-Approval
A mortgage pre-approval is to see the maximum amount you qualify for a mortgage loan. You're also given an estimate for your monthly mortgage payments. Depending on the lender, an interest rate is locked in for 60 to 130 days for you while you look for a home.
A pre-approval does not guarantee you will get the mortgage for that maximum amount. The final amount is dependent on the purchase price of the property and the amount of your down payment.
As you are saving for your down payment, you need to ensure to keep some money aside for closing costs, moving and other immediate maintenance costs as well.
The process typically involves a pre-qualification to give an estimate of what you can afford, then a pre-approval provides a more accurate amount.
Documents Needed
Social insurance number (SIN)
Proof of employment
Proof of income
Tax documents
Place of residence
Bank account information
Credit information
Purchase agreement
Gift letters
Monthly expenses
Self employment documents
How long does a pre-approval take?
A pre-approval can take up to three days provided you have everything ready.
Does a pre-approval affect you credit score?
Pre-approvals do affect your credit score, however, it’s only checked once and then compared to a wide range of lenders.
What credit score do I need to qualify?
Typically a credit score of 620 is needed, however, the higher the better.