A pre approved mortgage in Calgary is something that can actually help someone who is looking to buy a new home. A pre-approved mortgage is not a guarantee that the loan is in fact approved. However, it does mean that the person is a potential candidate that has already met certain criteria standards.
A pre approved mortgage may be sent to a candidate by way of mail from a bank or finance company. A pre-approved candidate is someone whose name was more than likely obtained from special lists that were obtained through marketing firms or the credit bureau. Finance companies many times will purchase special lists which contain customer names, addresses and other important information.
A pre-approved mortgage must still go through the normal processing channels. Mortgage applications must be completed and the finance company may also request a number of documents from the applicant. Submitting the required documents will certainly help speed up the application process.
Normally documents such as income tax return copies, pay stubs, creditors letters and employment verification are required. Credit bureau reports are always obtained as part of the application process. Excellent credit will surely get you a better interest rate on a mortgage. Credit score tells a great deal about a person’s credit history. Candidates with less than perfect credit may still qualify for a mortgage, however, they may be subjected to a higher interest rate as well as revised credit terms. However, keep in mind a Pre approved mortgage in Calgary is the first step in the mortgage process.
Sometimes people are misled that a pre approval is a guarantee that they will receive their loan. Keep in mind, a pre approval simply means that certain criteria were met and the person may certainly qualify for a mortgage. However, a final determination on a mortgage cannot be made until the application is processed. The fact that a person has met certain required criteria is a positive step in the right direction. The majority of mortgage applications can be done on line. The approval process is much quicker than in previous times. The loan officer or consultant will notify the customer if any additional documentation or paperwork is required. If all paperwork is received within a timely fashion the whole application process should go smoothly.
Purchasing a home can be an exciting experience especially for first time home buyers. However, make sure that you are aware of the terms of your loan as well as interest rates and other options. It is important to make certain you are receiving the best possible interest rate, especially if you have picture perfect credit. A good credit rating is critically important when applying for a new mortgage.
David Morris is the Author of this Article . For Further Details About Professional Mortgage Brokers in Calgary please visit our website: cgymortgage.com
