Why Do I Need To Do This First?
Being pre-approved for a mortgage has its advantages. It saves time when applying for the actual loan because all the paperwork has been pre-assembled. It establishes how much you can borrow, so you don't waste time looking at properties you can't afford. And since most mortgage lenders will guarantee the current interest rate for 60 - 90 days, you will not have to worry about rising interest rates while shopping for your ideal home. Finally, homebuyers who are prep-approved are in a better bargaining position when making an offer on a home, because sellers can feel confident about their creditworthiness
Many financial institutions are competing for your business so it makes sense to shop around for your future mortgage. Most lenders are willing to reduce their posted interest rate so don't be shy about bargaining.
How Do I Prepare?
Before approaching lenders, prepare yourself with a collection of the financial information they will require. This not only saves time, but it leaves an impression with the lender that you are a serious buyer. Here are a few things your lender will want to see:
Personal information such as address, number of dependents and marital status.
Employment details, including a letter from your employer verifying your salary.
If you are self-employed, a minimum of two years of tax assessments will help determine your average income.
An Equifax or TransUnion credit report.
Banking and investment information.
Details of your assets (i.e.- a car, other property).
Information on loans and other liabilities such as credit cards.
Pre-approval is the next best thing to a loan commitment. Once your application has been approved, you will know how much you can borrow and you will be ready to start searching for a home. Your local financial institution will be able to provide you with more information on pre-approvals. Or ask a mortgage broker to help you find a lender and the best mortgage package for your financial needs. Source: REBGV
Hire A Buyer Agent If you have questions regarding your financial options, browse my affiliate page for some very helpful and professional lenders. If you have already taken this step, call me now and let's sit down and disucss your home buying options. You can book an appointment by calling 604-789-6995 or fill in my Contact Form.
