Are you thinking about buying a home? The first step is to get yourself pre-approved for a mortgage. When your mortgage is pre-approved you know up-front what you can realistically afford to pay for a home in terms of purchase price, down payment, and closing costs. With a pre-approval you have an additional advantage of having your interest rate guaranteed for 90 days. If interest rates increase while you are house hunting you do not need to worry, you get the capped rate.
Pre-qualification for a home is the first step and costs you nothing, but gives you both a goal of what homes are in your affordability range. A Mortgage Broker will look at your credit report, earnings, debts, and savings in order to see how much home you really can afford.
During the pre-qualification process, you will be expected to provide the following information to the Broker
- Your gross monthly income
- Your total monthly payments (car payments, credit cards minimums, child support payments, student loan payments, any other monthly debts)
- Where is your downpayment coming from.(No money down program, RRSP, a gift, line of credit, etc.,)
The Mortgage Broker will be looking to see that your debt to income is about 40 percent, max 42 percent and the lower the better. At MyDaddyHomes our Mortgage consultants work at the speed of lighting, they are fast and thorough. Once you are pre-qualified you are now ready for a pre-approval. If you are looking to buy a home within the next 90 days, be sure to contact a MyDaddyHomes Mortgage consultant today.
Mortgage Summary:
Pre-qualification:
Pre-qualification is an informal agreement between you and a Mortgage Broker. The broker gives an amount in their opinion on how much they think a lender will be able to lend to you based on information that you have provided to them. The broker may not do any background checks at this point. The broker relies solely on you portraying an accurate picture of your circumstances. If you are not candid with the broker, you may be denied the loan.
Pre-approval:
The lender will actually check your credit history, employment information, assets, and liabilities. The only thing they won't check is the property that you plan to buy, because, of course, you haven't found it
The role of the Mortgage Broker:
Mortgage Brokers do not actually work for any specific lender, their job is to assist you in getting the right mortgage at the right rate and terms. They look at all lenders products and services and determine which is best for the client. Having an good Mortgage Broker on your buying team is a must.
Recommendation:
MyDaddyHomes highly recommend that you get pre-qualified before you start your search for a home
How to get Pre-approved:
Contact a MyDaddyHomes Mortgage Consultant and shop with the power of a cash buyer. Click here..
