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Mortgage Approval process in Edmonton | Edmonton Real Estate Pro | Mani Bagga

Posted by Mani Bagga on Thursday, August 4th, 2022 at 4:18am.

Mortgage Approval process in Edmonton- Mani Bagga

Since the beginning of 2022, Edmonton has experienced a spike in the housing market, and almost all buyers buy their houses through a pre-approved mortgage. But what is a pre-approved mortgage? And how can I apply for one in Edmonton? This blog will cover all your doubts regarding mortgages in Edmonton!

 

What is a Mortgage?

A mortgage is a loan where the borrower gives the house as a security to the lender. The lender then has all the rights to the house unless and until it is paid in full with interest. Almost all the home buyers in Edmonton go for a mortgage as they are not some of the wealthiest people in the country and cannot afford to purchase a house upfront.

 

The Mortgage Process - How Do I Get One?

If you’re a new home buyer or are going for a mortgage for the first time, then read carefully because here are the steps to get a mortgage successfully -

 

  1.    With the help of a real estate agent, search for a property and finalize the price at which you can get it.
  1.    Then, get yourself a pre-approval. This means that you have shown the lender certain documents and proofs and are eligible for the mortgage with a locked-in interest rate.
  1.    To get a pre-approval, you might need to present the following to the lender -
  •      Credit Score - A good credit score can increase the chances of getting pre-approved, while a credit score below 600 will not get you a mortgage in most places.
  •      Proof of Employment with history - A lender is interested in your evidence of employment because they want to know if you have a stable source of income and if you will be able to pay back the monthly amount or not.
  •      Any assets - They will also check if you have assets you can use to pay off the loan if you cannot do it through your income. The lender can ask for proof of any assets or collateral to ensure their money is safe. Many mishappenings can happen as it is an extended period.
  •      Your History - Most lenders do not give mortgages to people with a criminal record. If you have been on the sheets of the police in the past, you might ask the lender beforehand if they will give a loan to you or not. This will save your as well as their time.
  1.    After getting pre-approved, you have the down payment coming your way. Down payment is the first amount you pay to the lender and is usually a significant part of your mortgage. It can be between 5% to 30%, but 20% is considered an ideal amount. Your down payment also decides if you will be required to pay for a mortgage loan or not. It is advised to pay more than 20% of the total amount as a down payment to skip paying for this insurance.

 And there it is, after all these steps, you’ll get the mortgage you applied for! Now it might look easy while reading, but there are a lot of layers to this, and you will need help in this process.

 

Mani Bagga is one of the best realtors in Edmonton, and his highly experienced Bagga team is always here to help! They can get you through this tricky process and help you choose the perfect property. With the Bagga Team by your side, all you have to worry about is planning your stuff to look the best in your new home!

 



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