If you are looking to buy a home, a pre-approval is a must because this will provide you with accurate information regarding the amount you can afford. Assuming is never a good idea because you may think you qualify for a certain amount when in reality, you qualify for a lot less. To prevent this from happening, it’s important for potential buyers to be prepared and realistic because this will make your home purchasing process a lot more enjoyable, and there will be no need to stress.
A pre-approval is necessary in every situation, and this should be your first step, so don’t start looking at houses or attending open houses unless you have this information. This way, you will be aware of your price range and will not waste your time looking at homes you cannot afford.
In order to get a pre-approval, you will need to submit a number of documents to the lender, so make sure you have the following:
Copies of your driver’s license: This is required for all of the buyers involved, so those that are going to be on the loan will have to present this information. This will allow the lender to complete buyer verification and will also allow them to detect fraud.
Copies of social insurance number cards: This, too, is a requirement because it will confirm that you are, in fact, the person you claim you are and will also help prevent loan fraud.
Current mortgage statements: If you currently own a property, you will have to show the lender what your monthly payments are for your current home, as this will help determine your debt-to-income ratio. These statements will be required regardless of whether you plan on selling this property or wish to rent it out.
Recent bank statements: Do not try to hide anything because the lender will examine all of this information and will look through your debits and credits from every account. It’s always better to be honest because the information will come out one way or another, and lenders will discover anything you are trying to hide.
Pay stubs: The lender will need proof of your income, so they will need pay stubs to confirm that your income is what you claim. Each lender will have a different timeline requirement but in most cases, the past 30-60 days of pay stubs will be required.
Additionally, you will have to provide your property tax bill and tax return statements, so there are a lot of forms you will have to present and being prepared is a must, as it will speed up the process.
If you want to purchase a home, the experts at Easy Approval can help you buy your dream house. Our brokers can provide you with the best mortgage rates and will guide you in the right direction. We serve clients in the Burlington, Oakville, Georgetown and Milton areas, so if you are looking for a mortgage broker near me in Ontario, contact us today!