11 Jul Everything You Need to Know About Mortgage Prequalification
Most great Kelowna mortgage brokers will tell you the hunt for a home shouldn’t begin with contacting a realtor, it should start with a mortgage lender who can help you prequalify for a mortgage.
Obtaining a mortgage pre approval means you know exactly what your home purchasing budget is and what your payments may be. Depending on the lender, you may be able to lock into an interest rate for 60 to 120 days.
This means you can save time when looking for a home since you know which homes are a feasible price. It can also signal to your realtor that you’re serious about purchasing a home and can result in faster and better service from them. Additionally, if you find your dream home, you know you can confidently make an offer on it quickly. While mortgage calculator tools can be helpful, getting pre-approved for a mortgage means you’ll have a more accurate idea of what you can afford since factors that contribute to your overall strength as a borrower will be evaluated. This will help you avoid any surprises when you go to apply for a mortgage.
The Mortgage Prequalification Process
Prequalification can start anytime up to 120 days before you actually purchase a home. This may vary depending on how long your specific lender’s pre-approval is guaranteed. This is step one in the mortgage process many potential home buyers prefer to get this out of the way before making an offer on a home. This way, they’re not simultaneously dealing with negotiations. Dealing with pre-qualifications and offers can be stressful since every moment can be crucial, especially in a real estate market like Kelowna. If you’re in competing offers on a home, and you have a preapproval while the competing buyer doesn’t, you have a great advantage.
What To Bring To A Mortgage Pre-Approval
Now that you know the benefits of getting pre approved for a mortgage in Kelowna, there are a few things you should bring to a mortgage pre approval. Lenders will look at your current assets, your income and current level of debt.
You’ll need to provide your mortgage lenders with identification, proof of employment, proof you can pay for the down payment and closing costs, information about other assets you own (such as a car, a boat or cottage), and information about your debts or financial obligations.
For proof of employment, you’ll need to provide confirmation of your current salary or hourly pay rate, this could be your last paystub and a letter from your employer. If you’re self-employed, you’ll need to provide notices of assessment from the Canada Revenue Agency for the past two years.
What To Ask When Getting Pre-Approved for A Mortgage
If this is your first time getting pre approved for a mortgage, there are a few things you should remember to ask your Kelowna mortgage broker. First, make sure you know how long they guarantee the pre-approved rate. Second, make sure to ask if you will receive a lower interest rate automatically if interest rates decline while you’re pre approved. Lastly, ask if the pre-approval can be extended or not.
Apply For A Mortgage Pre-Approval
Buying a home doesn’t need to be an overwhelming process. If you decide to work with a qualified and excellent Kelowna mortgage broker like John Antle Mortgages, you can rest assured we’ll assist you through every step of the process. We can help answer questions and guide you through a smooth, home purchasing process. Additionally, unlike working directly with a lender, we shop around for you, comparing rates and lending options to help you find your best possible mortgage rate.
Our team of friendly and experienced mortgage professionals would be more than happy to answer any questions and help you get pre approved for a mortgage.