A Guide to Mortgage Pre-Approval: Do’s and Don’ts

Buying a house is one of the biggest investments you will make in your lifetime. With the high cost of housing in Ottawa, it is important to secure a mortgage pre-approval before you start house hunting. A mortgage pre-approval is a letter from a lender that confirms the amount of money you are qualified to borrow for a home loan. It is an essential step in the home-buying process and can help you avoid disappointment and wasted time. Here is an ultimate guide to the do’s and don’ts of mortgage pre-approval in Ottawa.

DO: Check Your Credit Score

When applying for a mortgage, your credit score is a crucial aspect that lenders take into account. Having a high credit score can increase your chances of getting pre-approved for a mortgage with a lower interest rate. Conversely, if your credit score is low, you may end up with a higher interest rate or even be denied a loan. Before applying for a mortgage pre-approval in Ottawa, check your credit score and make sure it is in good standing. If you have a poor score, take steps to improve it before applying for a mortgage.

DON’T: Make Major Purchases or Open New Credit Accounts

When you apply for a mortgage pre-approval, lenders will review your credit report to determine your creditworthiness. Making major purchases or opening new credit accounts before applying for a mortgage can negatively impact your credit score, which can affect your ability to qualify for a mortgage or result in a higher interest rate. It’s best to avoid making any major purchases or opening new credit accounts until after you have secured your mortgage pre-approval.

DO: Gather Your Financial Documents

To qualify for a mortgage pre-approval, you will need to provide your lender with all the necessary financial documents, including income statements, tax returns, and bank statements. Gather these documents in advance to speed up the pre-approval process and avoid delays.

DON’T: Quit Your Job or Change Careers

Lenders want to see a stable employment history when reviewing mortgage pre-approval applications. Quitting your job or changing careers can signal instability to lenders and may negatively impact your chances of being approved for a mortgage. It’s best to wait until after you have secured your mortgage pre-approval before making any major career changes.

DO: Shop Around for Lenders

Not all lenders are created equal, and shopping around for a mortgage pre-approval in Ottawa can help you find the best interest rates and terms. Be sure to compare rates and fees from multiple lenders before making a decision. You can also work with a mortgage broker to help you find the best deal.

DON’T: Overestimate Your Budget

When you receive your mortgage pre-approval, it’s important to remember that it is not a guarantee of a loan. Lenders will still need to review your financial information and the property you wish to purchase before making a final decision. It’s important to be realistic about your budget and not overestimate the amount you can afford to borrow.

DO: Get Pre-Approved Before House Hunting

Getting a mortgage pre-approval before you start house hunting can save you time and disappointment. It can also give you an advantage over other buyers who are not pre-approved. With a pre-approval in hand, you can make an offer on a house with confidence and avoid the risk of losing out on your dream home to another buyer.


A mortgage pre-approval is an essential step in the home-buying process. By following these do’s and don’ts, you can increase your chances of being approved for a mortgage and avoid common mistakes. Remember to check your credit score, gather your financial documents, shop around for lenders, and get pre-approved before house hunting. With these tips in mind, you’ll be well on your way to securing your dream home in Ottawa.

At Ottawa Mortgage Services, we believe that Canadians have the fundamental right to invest in their own homes. That’s why we are committed to providing the best mortgage solutions to our clients, regardless of their financial situation. Our team of experienced and knowledgeable mortgage specialists in Ottawa will work with you to help you find the best mortgage options that suit your needs and budget. Contact us today to learn more about our services and how we can help you achieve your homeownership goals.