6 steps to get mortgage pre-approval from your bank

Securing pre-approval from your bank is a powerful tool in finding the home of your dreams. Read the six steps to get a pre-approved mortgage and start your path toward home ownership.

In just minutes, you or your lender can pull your credit report and order your credit score.

• Knowing these values can help you understand where you fall in the real estate market and help you make the best decision on which house or condominium to purchase.
• Mortgage lenders reserve the lowest interest rates for people who have the highest credit scores.

One of the first things a mortgage lender will want to see is proof of income.

• Your T4 statements from the past few years will serve as an important benchmark for your lender to accurately assess what you earn and how much you can afford.

In addition to proving your income, a mortgage lender will also need to see your bank statements.

• This provides conclusive information he or she will use to gain a full picture of your specific financial circumstances and make the best evaluation of your ability to borrow money and make your mortgage payments.
• This step will also include an inventory of your current debt.
• You may want to consider paying down debts like student loans before you begin the pre-approval process to ensure you have as much capital as possible to widen your housing options.

In addition to checking pay stubs, a lender will also verify that you are currently employed.

• Your lender may even contact your employer to confirm your salary.
• If you’ve changed jobs recently, the lender may call both your previous and current employer to gain a fuller view of your financial situation and to provide you with the best loan option.

Your lender wants to know almost everything about you!

• The next step is to provide forms of personal identification like your driver’s licence and other pertinent documents.
• You may also need to provide your signature to enable your lender to pull credit history and reports.

No matter what kind of home you’re looking for, getting pre-approved for a mortgage is an important, powerful step toward home ownership.

It may seem a little invasive at first, but your lender is a professional who needs to have as full and as accurate a picture as possible of your finances to help you find a home you can afford not only now, but for years to come.

Contact a qualified mortgage lender in your area to begin the mortgage loan pre-approval process.