The Pre-Approval Process



You have decided it’s time to start your search for a new home.  Where does one begin?  Indeed, it’s exciting to browse the MLS listings and attend open houses; perhaps even contact a real estate sales representative.  Before you get serious, get pre-approved!


One can complete a ‘pre-qualification’ initially.  This is done over the phone, simply by crunching some numbers with a lender.  They will inquire upon your current assets (things you own, including your current real estate) and long term liabilities (monies owed) as well as your income and down-payment.  This process will provide you with an approximate figure on how much you can afford to spend on a home.  It does not however provide you with a lender’s commitment for a specific amount.


In order to save you time, money and possible disappointment, it is well advised to obtain a pre-approval.  Upon finding a licenced mortgage professional to deal with, you will normally be required to produce copies of the following:


  • Details of your current employment and income
  • Details of previous employment if required
  • Typically, three years of Notice of Assessment copies/T1 Generals
  • Confirmation of any additional income earned.
  • A detailed list of all assets.  (Major personal assets - bank accounts, RRSPs and other investments ie. jewellery, vehicles, collections) as well as liabilities (amounts owing on credit cards, personal loans, car loans, personal lines of credit, other debts, or monthly payment obligations.)
  • Details of what your down payment amount will be.
  • Details of the deposit amount, and what the source of such is.
  • A credit report will also be obtained by the lender at this time.

Upon completion of this process, your lender will provide you with a definite value of what you can afford.  Having this completed also shows sellers that you are serious about buying and can be beneficial when negotiating for your home. 


Pre-approval eliminates much stress when completed prior to looking for that perfect home.  Furthermore, pre-approval can provide a locked in interest rate, normally for 60 – 120 days, while you shop for that dream home!

Christine Pirillo

Christine Pirillo

Sales Representative
CENTURY 21 Infinity Realty Inc., Brokerage*
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