Mortgage Pre-Approval: FAQs
2017-01-24 | 11:39:25
If you're thinking about purchasing a home but haven't gotten a mortgage pre-approval yet, you've come to the right place! A pre-approval will show you how much mortgage you not only qualify for, but what you can comfortably afford.
Here are some of the most commonly asked questions about getting pre-approved:
1. What does a pre-approval cost?
- Absolutely nothing! I never charge for helping you get pre-approved. I feel that this is such an important step towards your mortgage approval and part of the big picture that there should never be a charge for this. How do mortgage brokers get paid? Read more...
2. How long does it take?
- Your appointment usually takes no more than an hour.
- Getting a response back from your lender may take from a few hours to a few days after submitting the required documents, but I'll keep you up-to-date along the way!
3. What should I bring to the appointment?
- It's important to bring a clear idea of your yearly income and employment information, as well as information about your liabilities and assets(What you own vs. what you owe).
- Every application is unique so once I've had the time to get to know you I'll provide a detailed list of all the necessary documents to complete your pre-approval. This might include a letter from your employer, your most current paystubs, bank info, or any other details needed to verify your income and down payment.
4. Is a pre-approval a guarantee that I'll get a mortgage?
- While a pre-approval is NOT a guarantee that you will get a mortgage, IT IS a commitment from your mortgage broker and lender that based on the information available, you SHOULD qualify for this mortgage amount.
- Always keep in mind that some lenders will not be comfortable with certain properties/areas. Another important thing to remember is that a pre-approval does not get reviewed by CMHC, Genworth or Canada Guaranty(More info on mortgage insurance HERE), so there is always a possibility that an application could be declined by one of them.
5. My Realtor has asked for a pre-approval certificate. Can you provide this?
- Absolutely! Once we have your pre-approval ready to go, I will be happy to provide you with a certificate which lets your Realtor know that you are fully qualified up to a particular purchase price.
What if I am unable to get a pre-approval?
There are many different reasons why you might not qualify for your desired mortgage just yet, that's just fine! Whether you're working to rebuild your credit, increase your income, or pay down some debt, these are all things we can discuss and create a plan to achieve. With the goal in mind of home ownership, you will be surprised how quickly you'll reach your goals and get on track.
Most homebuyers get hung up on one of three key points:
- Not a large enough down payment(Need some help/ideas? Check this out)
- Too much monthly debt
- Low credit score(Here's what to do!)
While most people have enough income to comfortably afford their mortgage payments, they may either need to work on paying down/rebuilding their credit, or save up the required down payment. Once we've created a plan to address the issues, we will keep in touch and when you're ready we'll move on to the next step!
Ready to take that next step and get your own pre-approval? Contact me today or Apply online.