To get started you’ll provide your financial paperwork to the lender, and the lender will provide approval for a predetermined mortgage amount. Pre-approval agreements are generally for a 60- to 90-day term and the agreement may also guarantee an interest rate for a mortgage taken out during that period.
The mortgage lender will inquire about such things including:
- Your marital status
- Number of dependants
- Age
- Current employment
- Salary and other sources of income
- List of assets (e.g. vehicles, cash, etc.)
- Liabilities (e.g. credit card balances, car loans, etc.)
Lenders will also run a credit check to determine your payment history. Before applying for a mortgage, you can use a variety of online mortgage calculators to get an idea of the mortgage amount appropriate for your unique financial situation.