things to keep in mind before taking the plunge
Get a pre-approval. While you may have qualified for a certain mortgage amount when you originally purchased your home, don’t assume that you will still qualify for that amount. There have been many government changes that have reduced the amount of mortgage that may be qualified for. Has there been a change to your job or income? Are you now working on a contract vs permanent full-time? Do you work part-time or are you self-employed? Has their been a divorce with child and or spousal support to be taken into account? Have you had a job loss and your credit has suffered? All of these things can be mitigated but may take some time or planning. It’s best to talk with a Licensed Independent Mortgage Broker before you start looking for that dream home.
Remember that a pre-approval is not a guarantee of a mortgage. The Lender also has to approve the property that you choose. If there is a job loss, change in credit (more liabilities than disclosed) or any other material change the Mortgage pre-approval may be pulled – it’s important to work with a Broker who can protect you and present you with other Lender options should there be a change in your circumstances.