A pre-approved mortgage is an evaluation of a potential borrower by a lender that determines if the borrower qualifies for a loan from the lender. Keep in mind; a pre-approved mortgage can be helpful in estimating how much you can afford to spend on a home; however, it is even more valuable because it means that the lender has checked your credit and has verified that you are indeed qualified for a specific loan amount. Find out about Pre Approved Mortgage In Calgary.
To achieve a pre-approved mortgage, there are several things that need to be done first such as providing proof of income. All borrowers much show their W-2 statements for the past two years, recent pay stubs and proof of any additional income, such as bonuses, alimony, as well as two recent years of tax returns. Bank statements and investment account statements will also be needed and you will need to show proof of your credit. Lower interest rates are reserved for those who have good credit. However, even if your credit score is not good, lenders will often work with you on how to improve your credit score.
Employment verification will also be needed, as well as a copy of your driver’s license. Your lender will also need to see your Social Security number and your signature, so that your credit report can be obtained. Once you have gathered all the required documentation, you are then ready to apply for the best mortgage rates in your area.
There are a variety of benefits with a pre-approved mortgage such as saving time and frustration. In addition, a pre-approved mortgage can save you additional expenses. When buying a new home for the first time, new buyers are often not aware of additional costs such as insurance, lender closing costs, escrow fees and homeowner’s insurance. In addition, having a pre-approved loan lets homeowners know that you are serious about buying a home and it shows homeowners that you are ready and eager to get on with the home buying process. Pre Approved Mortgage Renewals In Calgary can make a difference in your home buying plans.
Having a pre-approved mortgage also increases your negotiating power. Once real estate agents and sellers find out about your pre-approved mortgage, they often will give you special treatment. And, sellers know that your offer is dependable and sure. What this means for you as a buyer is that the seller can agree to your offer, an offer that is dependable and true. If the seller chooses a buyer that is not pre-approved, that the buyer may not qualify for a loan in the amount that is needed. Keep in mind; once you have reached the contract stage, your pre-approved loan can speed up the closing process.
To conclude, a pre-approved mortgage can give you an advantage when it comes to buying a home. Find out more about pre-approved mortgages from your lender, today!
