Before you go house or condo shopping, it’s important to know how much of a mortgage you’ll qualify for.
There’s nothing worse than falling in love with the perfect home only to find out that you don’t qualify to purchase it.
A Mortgage Pre-Approval is also referred to as Mortgage Qualification (not to be confused with a Pre-Qualification).
A pre-approval is the process of collecting and reviewing all the necessary information and documentation that a Mortgage Lender will need when approving an actual mortgage loan once you purchase a property. The pre-approval is just done in advance to make sure you’ll qualify in the first place.
You can search online for a mortgage affordability calculator in order to calculate your own mortgage affordability. This is okay if you’re just looking to get a rough idea of how much you might qualify for, or for budgeting type purposes, but it is not an actual mortgage preapproval.
There are many factors that are considered when qualifying for a mortgage such as:
All of these factors are taken into consideration with every single mortgage application so it’s impossible to tell how much you’d be pre-approved for using just a mortgage affordability calculator.