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Mortgage Preapproval for Ottawa Residents
Finding and actually buying a new home can be frustrating and downright confusing. You may have experienced finding a home you like and then you go through the loan application process only to find out you’re not qualified for that loan. Sometimes the lender just tells you that you can’t afford that level of credit or loan amount. One way to simplify the process is to undergo mortgage preapproval in Ottawa.
Determining the loan amount beforehand that you are qualified for can be a good way to start your search for a new home. Since you already know the amount of funds that are available to you, you can approach sellers with confidence.
Mortgage Preapproval Ottawa
Our mortgage brokers in Ottawa have service levels that can help you with the preapproval process. These service stages include the following:
Mortgage prequalification is not necessarily mortgage preapproval – but it is the initial step to getting there. This phase of the process helps you figure out just how large are the funds that you are qualified for. Simply put, it is just an estimate of the amount of cash that you can borrow. There are no commitments being made at this stage or when you take advantage of this FREE service.
Home Buyer Preapproval
After going through the prequalification process, you will need to undergo the home buyer preapproval process. This is the stage when you get an actual mortgage preapproval. This will give you an estimated loan amount that you are actually qualified for. Whatever estimated amount that you get in this stage, this is the amount that you can actually use when determining the actual price of a home that you can afford or are qualified for.
What Preaaproval Means
Getting mortgage preapproval practically means the following:
- A credit underwriting review has already been conducted, which is based on the information that you have provided during the mortgage prequalification process.
- A credit check has already been conducted and you have passed with brilliant scores.
- Finally, having your mortgage already preapproved means that you have already filled out and submitted an actual mortgage application.
This is the third and final phase of the mortgage preapproval process. At this stage we have already processed the mortgage application form you filled out in the previous stage. We have already checked and verified your submitted documents such as bank statements, pay stubs, etc. In other words, your credit has been approved.
Do take note that preapprovals can still be subject cancellation or terms of the loan can change as needed. For instance, if your loan does not meet regulatory requirements then then certain statutes in the loan agreement may need to be modified.
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Details Of Mortgage Preapproval
Applying for a mortgage preapproval will involve the same steps as any other type of mortgage application. That means you will still need to provide detailed information regarding your current employment, your present income, your assets, and others.
The information you provide during the application process will still need to be reviewed by a lender’s underwriters. Please understand that when your loan has been preapproved what you are really getting is a commitment from a lender (one that we will find for you) for a specific loan amount.
Once you have been preapproved, you are already given access to resources that you can use to purchase a home. That means you can act quickly moving ahead of other folks who may also be interested in a piece of property.
For many sellers, a preapproved mortgage ideal, it means they can sell the property fast and rest assured that all the paperwork is done and done properly.
Requirements Mortgage Preapproval
A lender will need to check a few things before a preapproval can be arranged. The documentation you provide will be used to determine the following:
- Your credit score
- Your ability to pay a loan
- Debt to income ratio
You will also need to submit the following documentation:
- Proof of income (e.g. federal tax returns, quarterly all asset account statement, pay stubs, alimony, etc.)
- Proof of assets
- Proof of good credit
- Employment verification
Once you have provided all the information we will then find a reputable lender given your profile.
Advantages Of Mortgage Preapproval
You already know what you can afford – a preapproval means you will know the upper end of your budget really is. Here’s a tip: don’t give your original preapproval letter when you make your bid. You see, you can bid lower than what you can actually afford – note that sellers will try to wiggle through the negotiation process and try to get more for what they are selling – they would love to know your preapproved maximum. Keeping it a secret gives you more ammunition for negotiations.
Sellers will take you more seriously – you already have a preapproval documentation. This is a clear sign to the seller that you will not run into any financing issues. That makes you a clear contender compared to other bidders.
It removes any possible surprises that may occur AFTER you have selected a home to buy – you already had your income and credit reviewed, you have already submitted all the necessary documentation, and you have already jumped through every hoop in the process so to speak. This actually makes the process faster and more convenient on your part.