Get pre-approved and have an easier home buying experience
What is pre-approval?
Getting pre-approved for a mortgage should be the first step towards purchasing your new home. When looking for homes in the Fraser Valley, if you are pre-approved, it can greatly increase your chances of buying the home of your dreams.
So, what is pre-approval? It is the stage where you are partially approved to get a loan to buy your home. It takes into account several things such as your capacity to pay, the collateral you have kept as security to get the home loan as well as your monthly income level. After analyzing these factors, most financing organizations in BC will pre-approve you for the loan.
Why get pre-approved?
Getting pre-approved for a mortgage offers many advantages to buyers looking for Fraser Valley real estate. At the top of the list is the fact that it saves you a lot of disappointment if a lender turns you down for financing after you have picked your dream home. You also know exactly how much you can borrow. This amount coupled with your downpayment gives you a good indication of the type of home you can afford. Thus you can concentrate your energy on finding the best home that you can afford. Mortgage lenders also guarantee the interest for a period of 90 days. If there is an increase in interest rate you are protected. If the interest rates fall, you are able to negotiate the loan on new terms.
The fact that you have been approved for a loan also lets the seller know that you are a serious and qualified buyer. Your offer would not have a ''subject to financing'' clause. If there is a competing offer on the home, the seller would consider your offer to be favourable. You are also able to close the deal quicker as most of the paperwork involved with financing has already been completed. A may seller may be willing to accept a lower offer if closed quickly.
How do you get pre-approved?
Your first step is finding a mortgage broker that you can trust. If you don't know of any, your Realtor can assist you in finding one. Don't just get pre-qualified for a mortgage, which is based on a quick review of your finances. In most cases getting pre-approved for a loan does not cost anything and you are not committing your finances at this point to buy a home.
In almost all cases you will be asked to provide some information related to your income, debt load and a credit check would be conducted. You would be asked about your your marital status and the number of dependants you may have. You will be asked to provide your previous years tax assessment, a letter from your employer verifying your employment and income. You would also be asked about any investments, assets and other debts that you may have. A written consent authorizing the lending institution to conduct a credit check would also be required.
The Mortgage market has become extremely competitive nowadays. Most of the mortgage lenders will be more than willing to reduce their interest rates to get your business. Therefore, you need not be shy to ask for the best rate. Your Realtor can help you shop around. Even a small reduction in interest rates can mean a significant reduction in the amount you would be paying towards new home in the Fraser Valley.
To start eh pre-approval process, please fill out the form below and I will have a qualified mortgage broker contact you as soon as possible.
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