Arranging Financing 

What is our budget? 

Financial considerations & preparations are central to any home purchase. It’s important to understand that interest rates can change at any time & that the mortgage industry is highly competitive. Partnering with a mortgage broker or financial institution to help you find the right mortgage at the best rate is key to your home buying process.   

**Remember: Ask questions about payout penalties and terms. Read the fine print!!

Pre-Qualification VS Pre-Approval

A lender will look at your finances & figure the amount of mortgage you can afford. Then the lender will then give you a written confirmation, or certificate, for a fixed interest rate. This confirmation will be good for a specific period of time.  

Typically you will first pre-qualify for a mortgage, then get pre-approved before you find the specific home you wish to purchase. It’s essential to understand the difference, & to clarify which your lender is providing. 


An informal determination by a lender to grant or mortgage broker stating the amount of mortgage you can afford. 


 A guarantee in writing by a lender to grant you a loan up to a specified amount (subject to receiving full documentation). A  pre-approved mortgage is not guarantee of being approved for the mortgage loan.  

3 advantages of obtaining a loan pre-approval as early as possible in your home buying process:  

1. You will know where to begin your home search process.  

2. Sellers will find any offer you make more attractive if you are pre-approved for a mortgage.  

3. The length of time before closing can be shorter if you’ve secured a mortgage approval prior to signing  a contract to purchase property.