Calgary’s real estate landscape is dynamic and booming. Here, you should be financially prepared to stand out from the crowd. It marks you as a serious buyer in the housing market. Facing a problem in getting pre-approved for a mortgage?

If you’re a first-time homebuyer in Calgary or deciding to upgrade your home, getting pre-approved for a mortgage gives you a significant edge when starting to look for your dream home. Your pre-approval will show you what you can afford and show sellers that you’re not just browsing — you’re in the market for a home.

Let’s take a look at how to get a mortgage pre-approval in Calgary and why it can be the most important step in buying a home.

What Is Mortgage Pre-Approval?

A mortgage pre-approval refers to the lender’s written agreement that provides you with the loan. It carries a certain amount depending on the income, credit score, debt and financial factors. However, this is not the same as the final mortgage approval. The final approval happens when you make an offer on a home. On the other hand, this pre-approval is a crucial step before housing. 

Moreover, mortgage pre-qualification is a basic estimate which requires full documentation and a credit score check. Here, it makes a reliable indicator of your financial readiness. Before giving you a pre-approval, a mortgage broker will look at your-

• Level of debt
• Income
• Number of assets you own

Why It Matters in Calgary’s Real Estate Market

1. Know Exactly What You Can Afford

Calgary’s neighbourhoods vary dramatically from trendy inner-city areas like Kensington or Beltline to family-friendly suburbs like Seton or Tuscany. So, knowing your price range through a mortgage pre-approval will allow you to narrow your search to homes that fit within your price range. This will save time in your search and also avoid disappointment!

2. Boost Your Credibility as a Buyer

Sellers like pre-approved buyers because that indicates you are a strong buyer with a very understandable financing plan. In a competitive market, being a pre-approved buyer may be the difference in whether you get a house (with multiple offers).

3. Protect Yourself from Rising Rates

Most Calgary mortgage lenders will hold your interest rate for up to 120 days once you are pre-approved. This rate hold can save you thousands of dollars if rates increase while you are looking for a home.

4. Fix Financial Issues Before They’re a Problem

The pre-approval process may reveal problems we did not expect, like a low credit score or a high debt ratio. Any time we can find issues like these, the sooner we can fix them before we submit your final application.

How to Get Pre-Approved for a Mortgage in Calgary?

There are certain steps involved to get the final pre-approval for your mortgage. Let’s see them-

Step 1: Check Your Credit Report

Your credit rating is an important factor in whether you will be accepted for credit and at what rate. In Canada, if you exceed a score of 680, you generally have favourable terms. It is advisable to check your credit report and rectify any mistakes before applying.

Step 2: Gather Financial Documents

To apply for mortgage pre-approval, you’ll need:

• Government-issued ID
  
• Proof of income (pay stubs, T4S, Notice of Assessment if self-employed)
  
• Employment verification
  
• Recent bank statements
  
• Details of any outstanding debts or financial obligations

Having these ready will speed up the application process.

Step 3: Compare Calgary Mortgage Lenders

Regardless of whether you work with a bank, credit union, or mortgage broker, it’s worth shopping around. Mortgage brokers may be able to access a larger array of loan products and may help you find a better interest rate or a more favourable term. 

Step 4: Submit Your Pre-Approval Application

Once you have selected a lender, you will need to submit a mortgage application along with any documentation they request. The lender will typically do a hard credit report, review your debt-to-income ratio, verify your employment stability, and review your savings.

Step 5: Receive Your Pre-Approval Letter

If your application is approved, your lender will issue a mortgage pre-approval letter. This letter will say how much of a mortgage you qualify for, an estimated interest rate, and how long that rate is guaranteed. You’ll want to keep this letter handy while looking at open houses or when you’re making an offer.

Final Thoughts

Getting pre-approved for a mortgage in Calgary is a smart financial decision. Apart from it, it is one of the strategic moves in your financing journey. With a pre-approval in hand, you will always be ready to act quickly to choose the perfect property. 

In a fast-moving market like Calgary, the pre-approval makes a difference between choosing your dream home and watching another buyer take it. Therefore, pre-approval gives you the clarity, peace of mind and competitive edge which sellers respect. 

So, before starting to book the dream home or choosing it in the MLS listings, you should take time to get the pre-approval.