52882
The-Mortgage-Gal

Pre-approved for mortgage?

There seems to be a lot of confusion around the term pre-approval when it comes to mortgage pre-approvals.  Pre-approvals can range from a client giving a lender or mortgage broker their income and asking how much mortgage they qualify for to a full documented pre-approval with all the necessary paperwork to back up the application.  It is important for a borrower to know the difference.

It is imperative that the lender or broker complete an application with the purchaser to obtain not only their income but also any other financial obligations that they may have such as loans, credit cards, and child support.  These other financial obligations can impact the amount of mortgage that a borrower may qualify for.   This information can be verified by obtaining a credit report which will confirm the outstanding  balances of these obligations.  Many applicants these days are hesitant to have a credit report pulled as they fear it may lower their credit score but, often not pulling one can create frustration during the final approval when unexpected debts or late payments surface.

The most secure pre-approval is one in which every aspect of the buyer’s application has been verified.  Here is a list of some of the information that may be helpful to obtain prior to meeting for a pre-approval:

1.  Employment letter stating the position, time on the job, salary or hours and the prospects for future employment.

2.  Recent paystub – is a secondary confirmation and should agree with the letter.

3.  Notice of Assessments for two years.  These are often obtained if the borrower is hourly or has recently started a new job.

4.  Confirmation of down payment – a minimum of three months history showing the accumulation of savings towards the down payment.

 

These are some of the basics that can assist a lender or mortgage broker in giving you a pre-approval that is fairly solid and not subject to a lot of conditions.

 

If you require further information or would like to set up your FREE strategy session for a pre-approval please call 250 862 1806 or email [email protected].



More The Mortgage Gal articles

53776
About the Author

Laurie Baird and Tracy Head are mortgage brokers with Verico Complete Mortgage Services. Together they have over 45 years of experience in the mortgage industry.

As mortgage brokers, Laurie and Tracy spend time getting to know the people they work with and help them understand the mortgage process. They support their clients before, during, and after a home purchase.

Laurie and Tracy are able to offer their clients advice and options. With access to over 40 different lenders, Laurie and Tracy are able to match the needs of their clients with the right mortgage package. They work closely with their clients to find the right fit, and are around to provide support for years down the road!

Contact them at 250-862-1806 or visit:
http://www.okanaganmortgages.com

Visit Laurie's blog at: https://www.okanaganmortgages.com/blog



53798
The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

Previous Stories



55368


55671