Pre Approval Determine Affordability!
Devin and Wes at Your Mortgage Now believe pre-approvals are the place to start…even before house hunting!
A lender approves a specific mortgage amount and interest rate, providing a written confirmation or certificate so you are better prepared to shop for a new home. You’ll have a clear picture of what you can realistically afford in terms of price, down payment, fees, and other expenses. Also, real estate agents will often serve you better because they know you are a serious and committed buyer.
A pre-approved mortgage guarantees your interest rate for up to 120 days for the term you select, even if rates go up. If rates go down while your finding your dream home, you will receive the new lower rate. This protection could save you a substantial amount of money if interest rates are fluctuating while you are house hunting. Best of all, a pre-approved mortgage puts you under no obligation and is available to you at no cost.
In order to be pre-approved, all lenders will review three basic aspects of your personal finances. First is your income, which determines your ability to make monthly payments. Second are your savings, which allow you to make a down payment, covering closing costs, and keep some cash reserves to cover unexpected expenses. Third is how you manage other credit, such as car loans and credit cards. Your strengths and weaknesses can be gauged by looking at these components relative to one another.
Documentation you can expect to provide:
- Completed application form – includes personal information, income and employment history, and a financial net worth statement
- Credit history authorization – a credit check is performed.
- Down payment confirmation – bank statements, RRSP’s, gift letter, etc…
- Income confirmation – letter of employment, current pay stubs, notice of assessments, T1 Generals, tax returns for last 2 years if self-employed.
Benefits of pre-approval include:
- Know how much you can afford
- Peace of mind with a rate guarantee of up to 120 days
- Save money by customizing your mortgage options
- Conveniently shop all of the major lending institutions
APPLY ONLINE NOW or call us today!