A Beginner’s Guide To Mortgage Approval
To ease the financial strains of buying a home, seeking mortgage solutions is a great idea. However, for many first time home buyers, the subject of mortgages is daunting and challenging to grasp. At York National Realty Inc. we are all about simplifying the home buying process for you in any way that we can, so to reduce your troubles with mortgage approvals, we have formulated a Beginner’s Guide To Mortgage Approval to help you better understand the process.
First thing’s first, obtaining a mortgage involves three stages. It starts with the mortgage prequalification stage, where lenders and brokers will take a quick look at your financial status. The next stage is pre-approval, it involves a thorough check of your creditworthiness, which will determine the amount of interest you will need to pay. The final stage is mortgage approval, and this is only possible once you have picked a property for purchase.
Consult the experts: With the guidance of a real estate agent, you can figure out your budgeting and find the right house or condo within your price range. With the expertise of a mortgage broker or lender, you can identify the best mortgage options for you given your budget and personal preferences.
Understand all your finances: The first step to getting your mortgage pre-approved is knowing your financial situation. Your finances include not only your income and its different sources but also how much you spend and how much you save. In addition, you will need to provide a history of your income and employment, past addresses, your bank details, information about your assets, debts, credit reports, and other vital information that a lender or broker would require to assess your creditworthiness thoroughly. All of this is necessary to know if you are capable of repaying your mortgage loan.
Ask questions: When in doubt, the worst you can do is assume things. The best way to obtain clarity is by asking questions to the right people like your broker. You can avoid unnecessary stress this way, prepare yourself for the final mortgage approval, and stay ahead of other buyers interested in the same property as you.
Never lie about your finances: Before the pre-approval stage, you need to pass the prequalification stage for a mortgage. For pre-qualification, there is no thorough check of your credit scores and financial data. However, for a mortgage pre-approval, this information is thoroughly cross-checked. In case you manage to pass through the mortgage approval stage and are caught later on for wrong information, your house could be foreclosed while you face criminal charges.
Be organized: After you understand what your financial situation is, you need to have all your documents related to your personal details, credit score, debt load, and income ready. Your agent can go ahead and collect these documents themselves upon your request. However, having them organized and available can speed up procedures.
Advice From The Pros
Do not rush into anything: There’s no point rushing into things only to be dissatisfied with your decisions. When it comes to a decision as big as buying a house, let logic take control of your choices not emotions. Try to meet with your lender before your realtor and list all your debts and credits on paper to see what the mortgage amount will be. With this figure, you can accordingly set your sights on an estate that’s within your range.
At York National Realty Inc., our goal is to exceed your expectations. We are a boutique real estate brokerage providing top-tier services to clients. As the go-to realtors in Aurora, ON, we offer nothing but the best real estate services for buying or selling homes, real estate properties, investment properties, estate homes, and luxury homes all across Newmarket, Innisfil, Barrie, King, Aurora, Bradford, Sharon, and Holland Landing. Visit our website to learn more or contact us at York National Realty Inc. today.