Mortgage pre-approval will let you know what kind of house you can 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:
• 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, current loans, credit cards and other debts
• 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.
In the case of utilizing a mortgage consultant, we do one credit check so your credit is not adversely affected. The 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 can be guaranteed for up to 120 days, depending on which lender we submit an application to.
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, you will still have to acquire the “final” approval from the lender.
For mortgage brokers, if clients have already supplied us with the above personal and financial information, that final step will be quicker for us and you to finalize.