You’ve found a property worth seeing. The price fits, the location works, and you’re ready to book a viewing. Then comes a question: have you spoken with a lender?
Starting that conversation early gives you time to gather documents, ask questions and work through anything that needs attention—before you’re deciding whether to make an offer.
Start with a mortgage conversation
A mortgage calculator can give you a rough idea of payments. For a clearer picture of what you may be able to borrow, speak with a lender or mortgage broker who can review your income, debts and down payment.
Ask what they have reviewed, what remains outstanding and when any preapproval or rate hold expires. Lenders may use terms such as “prequalification” and “preapproval” differently, so get a clear explanation of what yours includes.
Get your documents together
Request a checklist from your mortgage professional. Requirements vary, but commonly requested items include:
- Identification: Government-issued ID.
- Income records: Recent pay stubs, employment details and supporting tax documents. Self-employed applicants may need Notices of Assessment for the previous two years.
- Down payment records: Account statements showing the funds and where they came from.
- Debt information: Balances and payments for credit cards, vehicle loans, lines of credit and other financial obligations.
If family is contributing to your down payment, ask about the lender’s gift-letter requirements. If the money will come from selling your current home, explain that early, too. CMHC identifies both the amount and source of the down payment as information mortgage professionals need.
Keep the requested records in one secure folder. Ask how to submit them safely and which documents may need updating while you search.
Set a budget you can live with
The maximum mortgage you may qualify for doesn’t have to be your spending target. Leave room for closing costs, moving expenses and home maintenance when deciding your price range.
Think about what you want left in your account each month. A payment that leaves you worrying about every grocery bill deserves another look.
One detail to remember: preapproval is not final mortgage approval. The lender still needs to assess the property, and approval for the full preapproved amount is not guaranteed.
Before your next viewing, send your mortgage professional a simple question: “What do you still need from me?”
Getting that answer now gives you something useful to work on while you wait for the right listing—and fewer documents to chase when one catches your attention.
