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Purchasing your own home is a monumental event in your personal and family life. It is one of the most significant emotional as well as financial decision you will ever make. It’s no surprise that moving houses lists as one of the most exciting yet stressful times in a person’s life. There is an abundance of factors to think of and consider.

Some of those matters are the best location, financial affordability, mortgage rates and terms, plus a lot more. There are numerous personalities and agencies you will have to deal with. Some of those people are loan companies, real estate agents, property sellers, property and tax lawyers, and more. These can sound overwhelming but with some measures, you can have an easier, smoother, and more enjoyable experience in buying your home. One of these measures is to acquire a pre-approved mortgage certificate.

What is a pre-approved mortgage certificate?

A pre-approved mortgage certificate secures a determined mortgage at a sure fixed rate of mortgage and at a specific duration of time. This specific certificate is obtainable from a mortgage representative. What this legally assures you is that, even if interest rates were to increase, yours will not. Further, and on a positive note, should interest rates fall, you get the lower rate as well. Now, there’s no pressure to make a home purchase so should your pre-approved mortgage certificate expire before you’ve found your new home, you simply take out a new one by getting in touch with your mortgage representative.

Why is it important in buying a home?

Having a pre-approved mortgage certificate grants you peace of mind and security as you go around making inspections and negotiations for a home purchase. The time pressure is off so you can make a wise choice with proper deliberation. The money (interest amounts) pressure is off so you can comfortably stick to your budget.

Most real estate agents actually encourage clients to get a pre-approved mortgage to begin with. Because having a solid mortgage financing arrangement in place also sends out a signal to homeowners and sellers that you are intent in making a purchase. Also with the certificate, all terms are clearly laid out. It states forth the maximum loanable amount, the interest charges, and the schedule of payments. You get confirmation once the property of your choosing is properly appraised and your credit review is found satisfactory.

What do I need to get one?

Certain requirements must be met in order to obtain a pre-approved mortgage certificate. Following are some of the things you may need to present:

1. Personal Identification papers such as a driver’s license.

2. Employment details which include salary confirmation issued by your employer.

3. Statement and proof of income sources.

4. Finance documents like bank account statements, loan papers, and other debts

5. Proof of assets

6. Proof of funds available for making the down payment, deposit, and closing costs (usually computed at 1.5 per cent of the purchase cost)

You can avoid missing out on your number one choice of home by getting a pre-approved mortgage certificate. And be happy to know that most mortgage brokers and banks usually grant the certificate without cost nor obligation.