Save Time on Getting a Mortgage with Mortgage Pre-Approval

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Save Time on Getting a Mortgage with Mortgage Pre-Approval

What is Mortgage Pre-Qualification?

Mortgage pre-qualification helps you in figuring out if you qualify for a home loan and if so, how much you can afford. Based on your debt, current income, and savings, it shows you where you stand financially.

For mortgage prequalification, you will require: Home purchase price Monthly payment you can afford Proof of income Down payment Budgeting goals

What is a Mortgage Pre-Approval?

Mortgage pre-approval is a free, no-obligation process where a lender tells you what your interest rate will probably be and your home affordability. It means that your application has been reviewed by an underwriter.

A mortgage pre-approval: · lets you shop as a cash buyer · gives you the power to negotiate · acts as an assurance for your realtor · gives you peace of mind

What you Need for Mortgage PreApproval?

To get the mortgage pre-approval, all you have to do is speak to your broker and discuss the options you have.

Here are the documents you need to provide to prove your financial situation.

Proof of employment Job letters from your employer verifying your employment and salary are best

Proof of liabilities Loan statements Line of credit statements Credit card statements (only for cards you’re carrying a balance on)

Proof of assets Recent bank account statements Investment statements RRSP and TFSA statements Car ownership documents

Circumstances in which you might not get Mortgage Pre-Approval Here are some of the common circumstances in which you might not get a mortgage pre-approval.

Your financial situation changes drastically Declaring bankruptcy or entering a consumer proposal Divorce or loss of a co-applicant Losing your job Taking on a large loan before getting the mortgage

The property has a serious problem Catastrophic damage to the land or structure It’s revealed the building lacks proper permits

Problem with the appraisal If the property appraisal shows that the value is far below the purchase price, the lender may back out of the deal

With mortgage pre-approval, you can proceed with confidence on the road to the home of your dreams.

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