Unless you have a wad of cash just sitting around, chances are you’re going to need to borrow money from a lender to buy a house in Burlington. Getting a mortgage pre-approval is usually the first step and is very beneficial because it shines light on how much you can afford, ensuring that you’re not getting into a financial nightmare that you’re not prepared for. Mortgage is a huge and financial responsibility and you want to take out as much uncertainty as you can. Most real estate agents and sellers want you to have mortgage pre-approval letter before they start working with you. essential
With that being said, here is the essential list of things to know about the mortgage pre-approval.
1. Shop around for mortgage.
When starting the mortgage pre-approval process you want to talk to a few different mortgage lenders first. Even tough the deals might be relatively the same you can always fine tune. This allows you to know how much money you have to work with, helps a lot when looking for the house.
2. Get your financial state in order.
You can request and obtain a free credit report from TransUnion or Equifax credit agency which will show your credit standing and for a fee you can get a rating too. This is what lenders will see before you apply for mortgage pre-approval. You want to take care of your outstanding debts and loans and make sure you are looking good. Close down any unused debt and make sure the information is all in order and the best it can be. This will give you better rates and larger amount.
3. You don’t have to settle for one lender.
Just because you get your mortgage pre-approval done with one lender doesn’t mean that you should at the end go with them because the rate used when calculating the mortgage amount is not necessarily going to stay. At the actual time when you find the house and sign purchase contract that’s when the loan type and rate will be determined. If not satisfying look elsewhere.
4. Prepare your financial documents.
Your lender will tell you exactly what you need to bring with you when going for a mortgage pre-approval but to be prepared include: T4 slips for last 2 years, Tax returns for last 2 years, Bank statements for last few months, Recent pay stubs or other proof of income and Proof of investment income, if any.
5. Stay on top of it.
You usually have 90 days to house hunt after you get your mortgage pre-approval letter showing the amount. Sellers want to be sure the buyers financial situation is still in order and hasn’t changed drastically. If it did, notify your lender so your pre-approval is adjusted too.
When you’re ready to look for a house in Burlington, remember to call Lori VanDinther, Burlington realtor. Being a long time resident of Burlington and working in the real estate industry for over 20 year, Lori has all the necessary skills and experience to representing your best interests and help you make all the right moves!