Buying a house is a dream of every individual. But, buying a house is one of the biggest financial decisions you can ever make. Getting pre-approval is the first step before you start the house search.
Why Mortgage Pre Approval May Be Critical To Your Home Buying Process
When you compare mortgage pre-approval versus mortgage pre-qualification, you will usually find that mortgage pre-approval gives you quality answers that you can count on to shop around for your next property. You will also have a little more peace of mind when you go house shopping. Many people want to get the mortgage they want as fast as possible, while others want to make sure that they are following the right procedure. If you can shop around for the best mortgage rate and the lowest fees, then mortgage pre-approval is likely your best option.
A mortgage pre-approval allows you to shop and compare for the best mortgage rate and terms, and you can budget for the payments that you can afford. It’s like a simulation before you have the mortgage and APS commitment. Most buyers who do not have perfect credit qualify for a mortgage pre-approval. This allows the buyer a chance to clean up their credit and build a solid credit history before going house shopping with a real estate agent.
You should always make sure that you know exactly the interest rate and monthly payments that you can afford when you buy a house. Many buyers focus only on interest rates, but this could cost you thousands of dollars over the life of your mortgage. Make sure that you know your financial net worth, as well. Before you go through mortgage pre-approval, you should also consider the cost of your mortgage and find out how much you can afford. With careful planning, mortgage pre-approval can save you a lot of stress and money.
How To Get A Mortgage Pre Approval
The first place that you should start your search for how to get pre-approved for a mortgage is the mortgage broker near you in Richmond Hill or any other city where your target property is located. In most cases, a mortgage broker gives you the best chance to get pre-approved for the maximum mortgage loan amount at the lowest costs to you.
Getting a mortgage pre-approval letter is quite easy if you have the right licensed mortgage broker working with you. In order to get a mortgage pre-approval, you need to prepare a few documents with your mortgage broker. These are supporting documents to verify your income and employment history, savings for the down payment, existing secured and unsecured debts, and government-issued identification.
When your mortgage broker works out the calculations for your mortgage affordability, you want to disclose the true numbers and be honest with yourself about the income and expenses. This honest collaboration with your mortgage broker ensures that you have enough income to cover the monthly mortgage payment and any closing costs too.
If you meet all the qualifications, then you may proceed to the next level of processing. At this stage, the lender will send you paperwork to sign and submit. Once you fill out the application completely and submit it along with all the required documents, you will get the pre-approval notice. At this point, it is important that you review the stated loan amount and the interest rate is matching to what was promised to you during the application process. This makes sure that you are getting the best deal possible.
What are the Advantages and Disadvantages of Mortgage Pre-Approval?
The reason that a mortgage pre-approval can be so helpful is that it gives you assurance on your affordability. Most buyers who apply for a mortgage will usually have many options on the table from hundreds of houses to buy. This means that as a buyer you can eliminate some of those houses based on your pre-approval affordability.
With a pre-approval letter, however, you’re dealing with one lender who is telling you what they believe you can afford. This will probably be the lender that you’ve had your best experience with in the past, but the fact is that you don’t have to rely on just one pre-approval from one lender when you work with a licensed mortgage broker near you. You don’t have to take a lender's pre-approval as final, you can work with a mortgage broker to find ways that can get you a bigger more loan amount from other lenders.
What are the advantages?
One advantage is that you are no longer buying houses in the dark. You have a measure on how much you can afford, instead of hoping that things will work out after your Agreement of Purchase and Sale (APS) is accepted by the Seller.
What are the disadvantages?
The biggest disadvantage of mortgage pre-approval is that it’s not a one-size-fits-all. While you may feel like you made the right choice, you can choose to be happy with that one pre-approval amount. Otherwise, you can work with a mortgage broker to find a better pre-approval from different lenders. This makes sense to do when you are trying to get the best mortgage for you and your family.
A licensed mortgage broker in Richmond Hill
Learn more from the previous press release: https://hindsmortgages.ca/richmond-hill-mortgage-broker/mortgage-broker-near-me-in-richmond-hill-ontario/#media-room-article/98195-what-you-need-to-know-for-a-smooth-property-closing-when-buying-properties
Jermaine Hinds - Mortgage Broker | Matrix Mortgage Global
Mr. Jermaine Hinds is a licensed mortgage broker with years of experience in the industry. He has a broad network that offers clients more than 100 different lending partners who are ready to offer various mortgage solutions, including home equity loans, bridge loans, and other specialized mortgages products. His mortgage license is powered by Matrix Mortgage Global (Brokerage Lic. #11108) in Richmond Hill. Those who would like more information about this topic, please call Jermaine Hinds at (647) 998-2767 or Jermaine@mmgb.ca
About Matrix Mortgage Global:
Matrix Mortgage Global is a Canadian mortgage brokerage that has been awarded 4X Broker Of The Year from 2018 to 2021.
