Preparing for a Mortgage Pre Approval
Being pre-approved is an important part of the process in purchasing real-estate when financing is required. There are some ways that you can prepare for it that will make the process go much more smoothly.
Firstly, having the documentation that will be required from you, ready for your financial professional, will make the process much faster. The most common documentation items that you will be asked for are:
- Photo ID
- Proof of income (letter from your employer or information about your own business if you are self employed)
- Previous tax years’ Notice of Assessments (2 years is usually good but you may be asked for more)
- Proof of funds for deposits and closing costs (bank statements or account statements)
- Information about your assets
- Information about your debts
Your financial professional will be very appreciative to have all of this information from your and it will help them in creating your profile and getting a pre-approval response back to you as quickly as possible!
Final Mortgage Financing Approval
Great! You’ve got an accepted offer on a house, you’ve been pre-approved for your mortgage amount, now what?
Depending on the property and what information is available on it, the lender may require some additional information before funding your mortgage. Often times that will include an appraisal of the home and property. It is a good idea to make sure that if you have financing as a “subject to sale” on your offer, that you give yourself enough time let the funder do what they may need to do before they can give their final “OK” and you can remove the subject.
Once the final “OK” is received, funding of the mortgage can take 24-48 hours once all paperwork has been signed with your legal professional. This process is usually done with either a lawyer or notary and they will get the completed and signed final documentation back to the lender and the mortgage will be funded at the agreed date and time specified on in your deal.