Why A Mortgage Pre-Approval?
Getting a pre-approval for mortgage financing before you start to look for a home is a smart move.
A Pre-Approval:
• gives you the edge and confidence when putting offers on homes in areas where buyers are actively competing for properties on the market.
• provides you with a clear sense of how much you are eligible to borrow.
• assures you of a particular mortgage rate for a period typically of 90-120 days.
• A locked-in rate means there is no risk of any interest rate increases while you are house hunting.
The good news for those who turn to a an independent mortgage professional is that a independent mortgage professional may be able to obtain a longer pre-approval rate hold. Plus, if the rates drop, your rate changes to the new rate.
Keep in mind the following:
1. A pre-approval is not a guarantee of financing, as the property you intend to purchase – along with your supporting information (such as income, down payment and employment history) –has to meet the financial institution’s criteria to be approved for lending.
2. A pre-approval does not eliminate the need to make a conditional offer.
3. A pre-approval does not take into account closing costs such as inspection and appraisal fees, legal fees, land survey or title insurance, land transfer tax and moving costs.
Information Required For A Pre-Approval:
For a pre-approval, the following information (at a bare minimum) is required of the applicant (and co-applicant); however, no proof at this time is necessary!
1. Full Legal Name(s)
2. Income(s)
3. Social Insurance Number(s)
4. Date(s) of Birth
5. History of residence and employment – 3 years
6. Summary of banking information (accounts etc.)
7. Summary information on assets & liabilities
8. Condo/maintenance fees, if applicable
9. Purchase price of property and down payment.
This information is submitted to the lender so they can make a preliminary decision of qualification, as well to enable the MortgageDirect2u Invis Mortgage Consultant to obtain the pertinent credit file(s). Credit file information reveals to the MortgageDirect2u Invis Mortgage Consultant where most likely your deal can be placed, or more specifically, narrows down the lenders and products that best suit your needs and qualifications. It is important at this point in the process to be completely open regarding any past credit issues.
Robert Lumb
Mortgage Broker
MortgageDirect2u Invis
Tel: 905.270.6757
Cell: 416.275.9284
E: rlumb@mortgagedirect2u.ca
HO: 401-50 Burnhamthorpe Rd. W., Mississauga, ON L5B 3C2
Brokerage License #: 10801, License #: M08002044
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