Are You Concerned That You Might Not Get a Calgary Mortgage?
Calgary here are a few things you should know about your Calgary Mortgage Pre Approval and how it can help you! For new Calgary home buyers it is very important to know all the resources you have at your disposal before making the biggest purchase of your life. After just 3 years of paying rent instead of a mortgage that is about the same monthly payment amount of $1,250, you’ll have spent $45,000 on rental payments and have nothing to show for it. On the other hand, if you’re paying on a mortgage, you’ll be creating equity with every payment that you make. It is true that some people will not qualify for a Calgary mortgage today. That’s why the pre approval process is such a beneficial one. You win no matter what the outcome happens to be! If you don’t qualify for a mortgage today, we can then work together on a plan that can help get you approved for a mortgage in as few as 6 months.
Without the Calgary Mortgage pre approval information you receive, you will simply be in the same financial condition 6 months from now that you are in today.
It is important to understand that a Calgary Mortgage Pre Approval is not the same as a pre-qualification. A pre-qualification allows you to show lenders that you are credit worthy enough to be awarded a Calgary mortgage loan. You won’t know what kind of loan you can get, how much of a down payment you’ll need, or even how much your mortgage can be. A pre-approval, on the other hand, allows you to know at what amount and at what rate you’re able to secure a mortgage. You will need to confirm your credit history and income to secure a pre-approval, which is why it is such a useful tool. If you don’t succeed in getting pre-approved, you’ll know exactly what needs to be done to correct the problem.
How Much Home Can You Really Afford Right Now?
There are a number of potential home buyer’s that wind up with a broken heart because they fell in love with a house that they just can’t afford. Many real estate shoppers go in reverse order. They find a house and then they try to secure a pre-approval for that amount. If you work with a Calgary Mortgage Broker to get the pre approval first, then you’ll know how much house you can actually afford.
This means you can often place a written offer on a house much more quickly.
Your Calgary Mortgage Broker knows that even if the difference is just 24 hours, that’s one day faster than someone else who might be interested in the same property. The pre approval lets you know what your lender believes you can afford. It gives you a starting point that can help you plan your financial future and find the perfect house in the best price range.
How To Get A Calgary Mortgage Pre Approval
How Does the Mortgage Pre Approval Process Work?
There are three steps required to every Calgary Mortgage pre approval process that will help us determine what type of mortgage a lender is willing to create for you.
- You will need to apply for qualification. This means you will need to give us your personal information, including your identification numbers. We also need your address history, your employment history, and details about what you own and what you may owe to debtors. We generally need a complete asset and liabilities history and 3 years minimum of your address and employment.
- A credit check will be performed. You will need to allow us access to your credit report. This report will tell us what your detailed loan and repayment history happens to be and will provide us with a beacon score, which is a credit score that lenders use to determine what type of mortgage to offer. A higher score generally means you can afford a higher percentage of your income being used for your new mortgage. It’s often a good idea to check your credit report before we do so you can fix any errors that might be on it.
- You will need to provide documentation. Proof of income can come in the form of paystubs, bank statements, or your business books if you are self-employed. Any additional income outside of employment will also need direct evidence of regular support. You are generally asked for 2 years of income verification, but lower scores might mean a request for a longer history.
If you want to figure out right now how much home you might be able to afford, the total needs to be 42% of your gross income. This means if you make $10,000 per month, your figure would be $4,200. You’ll also need to calculate how much debt you have right now. As long as your current debt payments don’t exceed 35% of your total gross income and you have good credit, then you’ll often be approved near the total 42% amount.
Getting pre approved with mortgage lenders Calgary can take some time, but it is an investment worth making. You’ll be able to get a confirmation about how much of a mortgage you’ll be able to have and this makes shopping for a new home simple and easy. We’d love to help! Start today and we’ll work together to get the best
Calgary Mortgage Pre Approval
rate for you so that you can own the perfect property.
For A Trusted Calgary Mortgage Broker Call Steven Crews today! Steven will help you with ALL your Calgary Mortgage Pre Approval needs!