The advantages of getting pre-approved for a mortgage
Find out how much you can buy a house. Pre-approval of a mortgage is an important step in the home purchase process and we can help. Solidmaxfinancial will help you with your financial strategy, mortgage amount, down payment, purchase price and give you a rough idea of how much you can afford.
For many, the first step in buying a home is to find a real estate agent. This is an important step, but in practice, it is advisable to meet with the lender first to see if you can get a mortgage pre-approval. (Some brokers may even require pre-approval before accepting a new client.) Pre-approval means that you can get a loan and know how much you can borrow. Means
We will advise you on the documents required for conditional approval of your mortgage (income confirmation, down payment confirmation, etc.). All conditions must be met for a mortgage to be fully approved. Pre-approval depends on your continued creditworthiness and is usually valid for 60, 90, or 120 days, depending on the lender.
Starting with pre-approval gives you time to compare lenders without hassle to meet the terms of the purchase agreement after making an offer. Pre-approval does not promise to work with that particular lender, but they already have your paperwork so you can make a loan faster.
The biggest advantage of getting a mortgage pre-approval is knowing how much home you can buy. Excluding homes from the price range can save you a lot of time. You can also fall in love with your home and be disappointed that you are not eligible for the required loan amount.
Having a pre-approval letter when making a home offer is a great tool for negotiations. This usually means that you can make a loan that is very attractive to the seller more quickly. Also, if the seller receives multiple offers, the one with pre-approval is usually selected.
One thing to keep in mind is that mortgage pre-approvals usually expire 60 days after they are created. This is because many things, such as income, employment status, credit score, and even interest rates, can change over the course of a few months. Therefore, the lender will update the documentation to continue to enjoy the benefits of pre-approval.
The process of finding and buying a home can be daunting at times, but pre-approval can reduce the stress of the process. More information is available online. Alternatively, you can book with your local mortgage adviser to discuss alternatives.