When it comes to getting a private mortgage pre-approval, there are a few essential things to keep in mind. Whether you are working with a Mortgage Broker Langley, or going through the process on your own, specific do’s and don’ts can make a big difference in the outcome.
First and foremost, it’s essential to understand what a private mortgage pre-approval is. Essentially, a letter from a lender states that you are pre-approved for a certain amount of money at a specific interest rate. This can be a valuable tool when you are looking to purchase a home, as it can help you know how much you can afford and also make you a more attractive candidate to sellers.
What Not to Do After Being Pre-Approved for a Mortgage?
It is good to estimate the amount of your mortgage loan pre-approval. However, there are some things you should wait to do about the pre-approval process.
- Do not apply for further credit after being approved- You must provide numbers that accurately reflect your financial situation; it is essential not to add new debts. If you can’t pay the total amount, applying for a credit card could increase your debt burden.
- Do not plan on budgeting at the high end of your budget- financial circumstances can change, so leave some room for adjustments when entering the numbers.
- Avoid making larger purchases- This includes buying a new car, taking out a personal loan, or making any other large purchase. These things can affect your debt-to-income ratio, which is essential in determining whether you will be approved for a mortgage.
- Don’t Change Your Employment Status- Lenders will want to know that you have a stable income and a good employment history, so making any changes to your employment status after being pre-approved can be detrimental to your chances of getting approved.
Do pre-approvals affect your credit score?
Remember that pre-approvals are essentially estimates of what you could qualify for in a mortgage loan. Pre-approval by a lender won’t pull your credit. If you are ready to meet with a lender to discuss terms for a mortgage loan, your credit report will be drawn from Equifax or Transunion.
What should you do before applying for a mortgage?
- Before applying for pre-approval, it is essential to know your credit score and try to increase it before seeking pre-approval.
- All documentation is required, including proof of income, investment statements, proof of assets, and evidence that you have the necessary paperwork.
- Research reasonable pre-approval rates.
- For direction, get in touch with a Mortgage Broker Langley.
Should I pay off Credit Card debt before applying for a mortgage?
Any debt that requires regular monthly payments must be paid off as soon as possible. Doing this will reduce your overall debt ratio, increasing the chance of being approved to get the most favorable terms on mortgage loans.
This is particularly true in the case of creditors with credit card accounts. Of all debts in the household, the credit card debt must be paid off first. In addition, credit cards typically have very high interest rates (some cards can charge as much as 19% to 21% or even more, as for some merchant credit cards); however, credit card debt is considered wrong by all lenders.
If your credit card debt is considered to be excessive by lenders, this may prevent lenders from approving you to get a loan for a mortgage. Private lenders might be able to support you in getting a mortgage loan, but only if the other requirements are fulfilled.
How to Apply for Private Mortgage Pre-Approval with Mortgage Broker Langley
Mortgage Broker Langley can provide you with the automated private mortgage pre-approval tool. This tool can help you identify the types of loans you might be eligible for, removing the uncertainty from the mortgage approval procedure. After completing an application, the PDF version of the pre-approval form is available and will be sent to you for information.
There are numerous types of mortgage loans offered by well-established private lenders. If the pre-approval tool shows that you are not accepted, we will meet with you to negotiate terms for personal mortgage loans considering your entire financial situation. Contact us at any time. We’ll be able to help you arrange financing for your mortgage to assist you in reaching what you want from your finances.