What is a pre-approved mortgage certificate?
This is a certificate that secures a mortgage amount at a guaranteed rate (for fixed-rate mortgages) for a specific length of time. Consider for example the one you can obtain from your mortgage representative: if interest rates increase, your rate will not. And, if interest rates fall, you get the lower rate. You’re under no obligation to purchase a home within the time period. If your Pre-Approved Mortgage Certificate expires before you’ve found a home, you can apply for a new one by calling your mortgage representative. Why is it important in buying a home? A pre-approved mortgage certificate allows you to shop confidently and provides you with the security of negotiating a house price that falls comfortably within your budget. Many real estate agents will encourage you to get a pre-approved mortgage certificate before they begin working with you. The fact that you already have your mortgage financing arrangements in place indicates to prospective vendors that you are a serious buye
