If you are ready to take the plunge and finally purchase a home of your own, one of the first steps that you should take is to get pre-approved for a mortgage. Be sure not to confuse mortgage pre-approval with pre-qualification.
Mortgage pre-qualification is a quick process where a lender will determine how much of a mortgage you could qualify for based on a quick assessment of your debts and assets. Pre-qualification however, does not guarantee that the lender will give you a mortgage. Mortgage pre-approval is a lengthier process in which the lender checks you credit and verifies the information that you have given. In pre-approval, the lender is actually making the commitment to provide you with a loan.
How can you get pre-approved for a mortgage?
The first step for getting pre-approved for a mortgage is to contact your mortgage broker. They will then ask you for various information and documentation including income, debts, assets, etc.
Your broker will also talk to you about the various types of mortgages available such as fixed rate mortgages and variable rate mortgages as well amortization options. They will talk to you about the different types of lenders ranging from banks to credit unions to alternative and private lenders. They will discuss with you the pros and cons of all your various options and help put together a plan for you based on your unique needs and circumstances.
Finally, your mortgage broker will take you through the application process. Shortly after that, your broker will let you know how much of a mortgage you have pre-qualified for. Your pre-qualification can be valid for between 60 and 120 days depending on who the lender is.
What does a mortgage pre-approval mean to me?
While getting pre-approved for a mortgage does not put you under any commitment to one lender, it is a smart thing to do before you begin house hunting. Pre-approval lets you know exactly how much house you can afford so you don’t have to waste time looking at places that our out of your price range. Furthermore, many real estate agents won’t even work with a client until they have been pre-approved.
The best way to get pre-approved for a mortgage is by working with a professional mortgage broker who can work on your behalf to help you get the best rates and terms.
If you are ready to take the first step toward home ownership, call Akal Mortgages today.
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