Mortgage Pre-Qualification: First Step to a New Home!

There is no denying the fact that buying a perfect-looking new home is never going to be an easy process. It is all about getting into the core of mortgage rates and terminology to understand what you are missing and what you may need to get the new home.  To get the clearance on the mortgage dealings, you should hire a qualified mortgage lender or broker. They are the trusted mortgage consultants with whom you can discuss your story of getting the new home. In many mortgage experts’ opinions, getting through the process of mortgage pre-qualification is primary.

What is mortgage pre-qualification?

A mortgage prequalification is a nonbinding assurance that will detail how much a lender is keen to finance and at what mortgage interest rate. It helps you know how much you can afford to spend on a home, and could also put you ahead of the game with mortgage brokers by showing them you have the funds needed to close the deal. We cover the basics of how a mortgage prequalification works and how you can get the process started.

What misconceptions should you avoid about the Mortgage Pre-qualification before you opt for a new home?

• It is the same as a mortgage loan.
• There is no need for the mortgage lender or broker in mortgage estimations.
• You are obliged to work with the mortgage lender with whom you have the prior commitment.
• You don’t need to stay prepared with complete awareness of mortgage terminology.
• It’s OK to fudge a little with mortgage estimations and calculations.

What documents do you need to submit for getting involved in the mortgage pre-qualification process?

• Bank statements for the last 60 days.
• A credit check and complete credit history information.
• Bank account number with two most recently opened bank accounts.
• Down payment amount of two most recently opened bank accounts.
• W-2 statements and signed, personal and business tax returns from the past two years.

How long does the prequalification process usually take?

If your finances are straightforward and your credit score is competitive (typically 700+), you can typically prequalify on the same day. If your credit history is complicated, your credit score is low, or if you've had previous issues paying back your debt, pre-qualification may take days, or in some rare cases, weeks, if your request isn't rejected.

What is an essential tip of mortgage pre-qualification necessary for the property buyers?

Time to get the loan can be very critical. By getting a mortgage pre-qualification early, you can work through the loan process with enough time. Some people have lost the home they wanted because the seller could not wait the time it took to get the loan. You can also save money by working with a lender that may have low fees, but take a long time to process the loan.

Final Thoughts

Hence, if you’re serious about purchasing the new home, then never miss the steps of mortgage pre-qualification with the help of mortgage lenders. For complete information on the other essential steps of mortgage pre-approval, you can seek the advice of RateShop.ca. They are one of the leading mortgage rate comparison websites in Ontario, Canada!