Getting your mortgage pre-approved will let you know what kind of house you’ll be able to afford.
It will make the search for your home easier and less time-consuming and will definitely help your realtor or developer know what type of property to show you.
To get your mortgage pre-approved, you will need:
• Your personal information, including identification, such as your driver’s license, if needed.
• Details on your job and proof of your salary. In the majority of cases, that will entail a letter of employment from your current job, along with your two most recent pay stubs. • You many also have to provide your Notice of Assessment from Canada Revenue from your last income tax remittance to show no income taxes are owing.
• Information about your bank accounts, financial assets (what you own), current loans, credit cards and other debts (what you currently owe);
How much your down payment will be and where the money is coming from.
• Proof that you have sufficient funds to cover the costs of closing the sale, such as legal, appraisal fees and property transfer tax.
• A credit check to prove your credit worthiness.
One of the benefits of utilizing a mortgage consultant is they can carry out the credit check process without your credit rating being adversely affected.
That single credit check can be sent to more than one lender thereby alleviating you, the borrower, having to go to different financial institutions and having more than one credit check done.
Interest rates are guaranteed for up to 120 days, depending on which lender we submit an application to. That should give you plenty of time to find the home you are looking for and get the final approval for a mortgage.
This will also give your real estate agent time to search for properties in your price range.
In the event you find a lot to build a home on, it will also give you time to find a builder who can supply you with the construction cost.
We can’t stress enough that a pre-approval is just that, a “pre”-approval. Once you have found a suitable property within your budget we still have to acquire the “final” approval from the lender.
And if you’ve retained a mortgage broker to help with this process, it should be expedited in a much quicker fashion.
But again, the first step to approaching a realtor or developer is to get pre-approved which will give you confidence in knowing you are finding a property within your budget.