Getting a pre-approval mortgage is a crucial step while buying your dream house. A pre-approval letter will make the home-buying process efficient. However, it will also help you understand the loan and find the deal that fits your financial status.
Moreover, if you have a pre-approval letter in your hand, you can discuss your loan with your lender and also do some negotiation with your lender. We can say that getting a pre-approval will let you get the mortgage amount that fits your budget. This article will provide you the information about getting a pre-approval mortgage Richmond Hill.
Explaining the pre-approval mortgage process
As we all know, getting a pre-approval for purchasing your dream house can be an overwhelming and confusing process. However, some lenders will hand you a pre-approval letter within an hour.
But there are some lenders that take several days to pre-approve you. The bottom line is that how much time it will take to get a pre-approval will depend on your lender and financial status.
Firstly, you need to submit your mortgage application and social security number so that the lender can see your credit. The mortgage broker will check out your credit report.
They will see that your credit report is good or bad then provide you with a loan accordingly. Remember that if you are trying to deal with multiple lenders in a short time, it will negatively affect your credit report.
Now question what you have to fill out in your mortgage application to start your pre-approval process. Below we will show you the seven sections in your mortgage application that you have to fill out.
1. Type of the loan
In this section, you have to submit the type of loan you are applying for. Moreover, you have to mention the loan terms, such as the amount of the loan, interest rate, and time for repaying it.
2. Information of the property
In this section, you have to mention the property information such as the address and the property’s legal description.
3. Personal information
In this section, you have to fill out your personal information like full name, date of birth, years of school attendee, address, and social security number.
4. Information about your employment
In this section, you have to mention your employment information like monthly income, employment date, and title. However, you also have to submit the mobile numbers of your current employers.
5. Monthly income and housing expenses information
Here you have to submit your monthly income information, bonuses you got, rental income, and other income sources.
6. Assets and liabilities
Here, you have to provide your information about your saving account with your current balance amount. Moreover, you have to mention your retirement savings, life insurance, bonds, and stocks.
You also have to submit the liabilities like student loans, car loans, outstanding debts, and child support.
7. Transaction details
In this section, you have to mention your transaction details, such as loan amount, estimated closing costs, purchase price, and mortgage insurance.
After submitting your mortgage application, the lender will provide you with a three-page document loan estimate within three days.
However, this document will showcase the loan amount, interest rate, and type of mortgage. It will also showcase the maximum loan amount according to your financial status.
Documentation needed for pre-approval mortgage Richmond Hill
Here we will show you the list of documents you need to gather after submitting your mortgage application.
● Bank statement
● Previous two years of W2 Tax returns.
● Asset account statements
● Driving license
● 30 days of pay stubs
● Income tax returns
● Divorce papers to use child support.
What is the right time for getting a pre-approval mortgage?
If you decide to purchase your dream house, you must know that the right time for getting a pre-approval mortgage.
However, applying for a pre-approval mortgage one year in advance of a home search is the best time. Getting a pre-approval at this stage will improve your credit profile and put you in a stronger position.
Moreover, it will give you enough time to pay off the down payment and your closing costs. However, you must also know that a pre-approval letter’s validity is about 60 to 90 days.
Getting a pre-approval will also make you show as a serious home buyer in front of the seller.
So here is the complete information about getting a pre-approval mortgage Richmond Hill. However, getting a pre-approval is vital to understand the loan and find the best deal that meets your financial requirements.