Get Pre Qualifed for a Mortgage

If you are looking to pre qualify yourself for a mortgage loan in near future, you have landed in the right place. Scroll down up to the interactive table which allows you to self-evaluate your situation and get mortgage brokers to provide feedback in terms of what should be the best course of action. We use your credit, income, and down payment (Home equity for Refinancing) to pre-qualify you. It’s quick and will provide you a direction so that you can plan accordingly.

How to Get Pre-Qualified for a Mortgage in 5 Simple Steps

Getting pre-qualified for a mortgage is simple only if you plan it ahead. You’ve finally found your dream home, and you’re ready to start the process of getting pre-qualified for a mortgage. But where do you begin? It’s important to understand the steps involved in getting pre-qualified so that you can be prepared every step of the way.

Here are 5 simple steps to get you started to get pre-qualified

Get organized and pull together all of your financial documents. This will include things like tax returns, bank statements, pay stubs, and more.
Work with a mortgage agent or a mortgage broker to get pre-approved for a loan amount. This will give you an idea of how much money you'll be able to borrow and what kind of interest rate you can expect.
Make sure your credit is in good shape before applying for a mortgage. This is one of the most important factors that lenders look at when considering a loan application.
Compare different lenders and choose the best option for your needs. Be sure to compare rates, fees, and terms before making a final decision.
Get ready for closing by completing any required paperwork and putting together any necessary documentation such as homeowners insurance information or appraisal reports."

5 Simple yet Critical steps to get pre - qualified for a mortgage

Decide how much house you can afford - This will help you know what price range to look in when shopping for a home

Deciding how much house you can afford before house hunting is an important step in the home-buying process. This will help you narrow your search and know what price range you should be looking in. Start by visiting a realtor who can give you an idea of what houses are available on the market and their pricing. You can also hop online to peruse listings on the MLS (Multiple Listing Service).

Next, make sure you know what amount of mortgage you can pre-qualify for. Don’t disregard the havoc of the mortgage stress test. Under this rule all banks need to qualify you at the proposed contract rate plus 2%. That should give you a good ballpark figure of house prices that are affordable for your budget. With this information under your belt, it will be much easier to find the perfect house that fits within your financial reach.

Get your credit score - A higher credit score means you'll likely get a lower interest rate on your mortgage

Having your credit score checked is essential for securing a lower rate of interest on your mortgage. Aim for a credit score of 670 and up, which offers the most competitive rates. If you have bad credit, this number may be harder to attain – but it isn’t impossible. Equifax and Credit Karma are two free services where you can get an in-depth credit report. Its paid service but worth it. Knowing your credit score is the first step towards finding yourself a mortgage where you don’t pay any lender fee- so take the plunge and check it now!

Know what kind of loan you want

With so many different types of loans available, it can be difficult to decide which one is best for you. It’s important to understand the different types of open or closed mortgages, the 25 or 30-year amortization period, its impact on mortgage payments, mortgage insurers like CMHC or private mortgage insurers, insured and conventional mortgages, not to mention mortgage pre-payment penalties. Taking the time to get informed about each loan will help you determine the best option for achieving your goals long-term. While you can find a lot of information online you can’t discount an independent mortgage broker on your side.

If you don’t have someone reliable and unbiased, allow us an opportunity to be your mortgage advisor.

Find a lender

Finding the right lender can seem daunting, but it doesn’t have to be. With so many options, some people feel overwhelmed by the decision. Whether you need a loan for a real estate purchase or equity takeout, if you do your homework, you will find that there are bank and non-bank monolenders available with competitive rates and flexible financing options. Nowadays, borrowers no longer need to walk into their bank – they can shop around online and turn to an independent mortgage broker.

Don’t forget the fine print especially the pre-payment penalties with the given lender.

Get pre-qualified the right way

The final step is to get pre-qualified for a mortgage by providing the lender with information about your income, debts, and assets

Ready to get pre-qualified for a mortgage? To ensure getting the best deal, it’s important to not just get pre-qualified quickly, but get qualified thoroughly.

A good mortgage broker will spend time gathering information and documents from you, such as all proof of your income, a credit report outlining any existing liabilities and proof of a down payment.

Additionally, you should have 90 days of bank statements for proof of a down payment if you are getting ready to buy a property.

Though pre-qualifying over the phone can be done quickly, taking the time to get pre-qualified properly with a mortgage broker is a much smarter option. Taking the right steps in getting pre-qualified can definitely benefit you in achieving your goal of acquiring a mortgage and most importantly save your sanity when you have already got accepted offer to purchase a property.

Mortgage Pre Qualify FAQ

When is it a good idea to pre qualify for a mortgage?

Any time you plan to buy or sell real estate it is highly recommended to pre qualify yourself.

Once you know your situation then you should speak to an independent mortgage broker.

How should I prepare myself for mortgage pre qualification?

At this stage you dont need to prepare any documents however its useful to know your credit score and what it is that you like to accomplish with your next mortgage.

Pre qualified for a mortgage. How important is the letter?

No, you don’t, because no one has verified your credit, income or down payment/ home equity yet.

If you need a letter of confirmation then you need to go through the process of pre approval, where your application is submitted to a lender, all docs are verified, credit is checked and then you are provided rate guarantee for certain period of time.

What does pre qualified for mortgage mean?

Mortgage pre qualification can tell you if you will be qualified with major banks or alternative lenders depending upon the selections you make on the interactive tale on this page.

Can i go directly for mortgage pre approval instead?

Yes we highly recommend going for pre approval because its accurate. When done correctly, pre approval process is almost like a mortgage approval

A mortgage broker is required to check your credit history (credit reports), collect all income documents (pay stubs, job letters), purchase price, loan amount, mortgage lender and process the application to draw conclusions.

You are provided a specific mortgage rate (%) with validity period.

This comes handy to negotiate house prices when you are out for house hunting.

In a nut shell, pre approval is like applying for a mortgage and getting approved for a mortgage depending upon your scenario.

Mortgage shopping doesn’t have to be daunting if you go into it prepared. By following these simple tips, you can put yourself in a much better position to get a great deal on your home loan. And remember, if you need help navigating the process, our team of experts is always here to lend a hand. Contact us today and let us take the stress out of mortgage shopping for you. You’ll be glad you did!