Pre-Approval: What is it?
Pre-approval is given from a lender in written from as a commitment that a particular borrower has qualified for a certain loan amount based on their credit information and income. These letters are usually valid for a period of 60-90 days. This doesn’t mean that you are taking out a loan, but simply tells you how much you would be able to easily get approved for and it is one of the best ways to ensure that you can get a loan before starting the house search.Why get pre-approved?
There are numerous reasons why pre-approval while looking to purchase your new home and the top reason is to understand how much you are eligible for and can afford. This will allow you to look at only the houses that are inside your budget and these letters are an asset in the real estate market, especially since it is extremely competitive. With a pre-approval letter your offer will be taken much more seriously than those who make offers without this letter and it could give you a boost in getting your dream house.
Also, you don’t want to be starting to search for a house and find the perfect one and give an offer, only to find out that you aren’t eligible for that certain amount. This is one of the worst things that can happen, which is why getting pre-approval is extremely important and should always be undertaken at the start of the process. The process is simple and only requires giving the lender the paperwork and obtaining the letter.What is involved?
First off, you need to get in contact with a lender of your choosing and give them the required paperwork. Once the paperwork has been submitted the pre-approval letter normally is approved within 24 to 48 hours. The letter will be given to you after it has been generated and it should be carried with you and shown to the real estate agent of our choosing so that they are aware of what budget you have. This will allow them to show you houses that are in that range, instead of showing you all of the houses that are available regardless of your ability to afford them.
Go ahead at Mortgage Bridge Canada for some of the best and trusted lenders today. Our company can help get you connected with various lenders and help get you on the way to owning your own home and the pre approved mortgage calculator also help you to make your payment easy and quick
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Last updated on: 07-13-2018 *Rates are subject to change without notice. OAC, E&O.E