Getting pre-approved is the second step and it tends to be much more in depth. This is where you will complete an official mortgage application (there is often a fee involved) and then supply the lender with all of the needed documents to be able to perform and extensive check on your financial background and your current credit score. From this information the lender can now give you a specific mortgage amount where you will be approved therefore a guideline of a maximum mortgage you can carry. You will also have a good idea of the interest rate you will be paying and you may even be able to lock in for a 60 or 90 day hold. Interest rates change all the time so it doesn’t hurt to get a rate held and if it gets better you can work with that. This pre-approval means you have a conditional commitment in writing and then you can look at homes at or below this price point.
This pre-approval is also advantageous as it will enable you to move quickly when we find you the perfect house in Saskatoon or surrounding area. In a multiple offer situation it can also give you a leg up on any competition as we may be able to eliminate the condition of financing if needed.