MORTGAGE FOR NEW PURCHASE:

“I am looking to buy”: A pre-approval is usually the first step before placing an offer on a property.

It’s not always necessary to get pre-approved for a mortgage, although well-prepared borrowers do, and it’s usually done before starting your property search. Not only will you know your borrowing capacity (how much you will be able to borrow) but you will be capable of making stronger offers without conditions, and receive interest rate protection should rates change. Based on the review of your financial status, a lender will provide you with a pre-approval outlining your interest rate, terms, and mortgage amount. With a pre-approval, you’d provide documentation to back up your claims and the lender reviews your credit report to get an idea of your debt-to-income ratios to determine the maximum mortgage amount you can expect to receive.

“I have an accepted offer”: An approval is the process of securing financing on a specific property.

As opposed to a pre-approval, an approval is subject to review. An approval happens when you are securing financing on a specific property; or when you find a property and the seller has accepted your offer. The lender will review and verify your income, credit score, and the value and condition of the property being purchased. The lender will require an inspection of the property being purchased, an appraisal, with supporting income documentation to verify your employment.

OUR PRE-APPROVAL PROCESS:

  1. You’ll start with our pre-qualification form where we will learn about your requirements for financing, your financial situation, down payment and mortgage amount, estimated purchase price, or anything else that may be applicable.
  2. We will then reach out to you to discuss the various mortgage features and options available to you.
  3. With your consent, we will then start your application. You will need to provide us with details about your income, employment history, assets, and debts. No stress, we will walk you through this
  4. Your mortgage agent will then advise you about the documentation that will be needed (to provide to the lender).
  5. With your permission, we will then obtain your credit report.
  6. From there we will assess your financial situation to ensure you fit within lender qualifying guidelines.
  7. Based on our assessment, we then determine the lender which best meets your needs and your financial situation.
  8.  If there are any conditions for approval, we will walk you through the entire process to help you obtain successful mortgage funding.