3 Important Reasons You Should Seek A Mortgage Pre-Approval Loan
Shopping for a new home is an exciting process, and while casually checking out area models can be fun, serious buyers should really start the process in their lender’s office. As a potential buyer, you benefit in a couple of different ways from the knowledge you will gain from that first meeting with a lender. When purchasing a home, doing whatever you can to make the process as smooth as possible is important, and nothing can make it easier than being pre-approved for a mortgage. Here are a few reasons why you should seek mortgage pre-approval before you buy a home:
Saves You Time
Mortgage pre-approval saves you time from scouting out homes that fall outside of your price range. Knowing exactly how much you’ve been approved for means that you don’t have to waste your time considering homes that are financially impossible. You can refine your search to look for homes that make sense for you.
A mortgage pre-approval loan doesn’t just save you time, it also ensures that you have more time to inspect practical homes. It happens far too often, potential buyers are checking out a home, analyzing the potential for upgrades/renovations and already making offers to the seller, only to find out they haven’t been approved for a loan that would cover the cost of the house. Pre-approval allows you to inspect homes that make sense for you and your family, and even if you don’t end up buying the home, at least you were using your time wisely.
Faster Closing Time
Make buying a home as a fast and painless as possible by seeking a mortgage pre-approval loan. With a pre-approval loan, all background checks have already been processed by the lender, which means they can begin the valuation of the property. When you get pre-approved for a mortgage, your credit has already been looked over, your income statements have been checked, and you’ve been accepted as trustworthy and liable for your mortgage payments. When purchasing a brand-new model home, mortgage pre-approval ensures the purchase closes much quicker. Although it may not speed up the actual home-building process, a mortgage pre-approval will take a lot of stress off your plate once your home has been finished.
How to Get Accepted for Mortgage Pre-Approval
Getting pre-approved for a mortgage loan is quite an easy process, which is why we’re surprised more homebuyers aren’t getting one before purchasing their dream home! Here are a few things you may need to provide to a lender before you can be pre-approved for a mortgage:
- Proper identification (SIN Number, Driver License, Passport, etc.)
- Confirmation of Employment (i.e. pay stubs)
- Income information (i.e. pay stubs) to verify that you can pay for your down payments and various closing expenses.
- A list of notable assets: vehicles, other homes, boats, etc.
Other financial considerations including:
- Credit card restrictions/ current debts
- Spousal support/ child support payments
- Active loans (i.e. car loans)
- Student loans
We can’t wait for you to move into your new place. Make it a fun and relaxing process by seeking a mortgage pre-approval loan today!