Verify Your Credit

Check your credit getting your free Equifax or Transunion credit report online. You can also sign up for sites like Borrowell for weekly Equifax report updates or some bank online apps, such as RBC and BMO, have free Transunion credit score report updates.

Typically, a credit score of 700 or higher improves your chances of getting pre-approved. To increase your credit score, try to keep your credit usage under 30%.

Do the Math

Once you know the total amount of your debt, compile all details of your assets, including your current home, investments, stocks, bonds, and other properties. Calculate their total value. Remember, it's advantageous to have more assets than debts.

Numerous online calculators are available to help you understand these figures and estimate the mortgage amount for which you may qualify.

Apply to Prequalify

Consulting with a bank or lender is a crucial step. They will pose questions that might reveal aspects you overlooked in your initial estimate, such as liabilities or unrecognized assets. With this comprehensive data, they can provide a ballpark figure of your borrowing capacity.

Keep in mind, this casual assessment is neither a guarantee nor a pre-approval; it's merely a tool to help you understand what properties are within your budget and determine your readiness for such a financial undertaking.

Choose Your Lender

Securing a mortgage is a significant financial decision, hence comparing options is wise. Even with a strong bank relationship, considering financing from other sources is beneficial.

Many buyers secure financing online, via mortgage services or traditional institutions, without leaving home and with the convenience of 24/7 availability. However, online processes may lack the personal interaction that could reveal options otherwise discovered through direct conversation.

For those short on time, employing a mortgage broker to compare rates can be efficient. Ensure the broker is independent and not tied to any particular bank or lending institution.

Get Pre-Approved

Obtaining mortgage pre-approval is akin to pre-qualification; however, it culminates in a lender's approval for a specified loan amount, with an interest rate secured for a set duration (typically 90 to 120 days).

Thus, these are the straightforward steps that guide you towards securing a mortgage tailored to your needs, propelling you into the home you've always envisioned.