Are wondering if you should be pre-approved for a mortgage? We at Richmond Lending pre-approval is recommended before you sign a purchase and sale agreement and hand over a deposit. Be aware, being pre-approved is not the same as pre-qualified. Being pre-qualified is answering questions to qualify you by your mortgage broker so they have an idea of how much you may be able to finance to buy your home. To be pre-approved you need to provide information and verification for your mortgage to pre-approved and this information is passed along from the mortgage broker to the lender, only a lender can pre-approve you. There are many benefits for getting pre-approved. Some of the benefits are; rate lock guarantee from the lender and best mortgage rate is locked in for a determined length of time (time depends on lender and rate), more attractive to a perspective seller and more likely to accept an offer from a serious buyer who has been pre-approved and you will be able to shop for your new home with more confidence and know how much house you can afford.
What you need for Pre-Approval:
1. Proof of Income
2. Proof of Assets
3. Good Credit
4. Employment Verification
The Bottom Line is you are under no obligation when you become pre-approved and it just makes sense. The mortgage brokers at Richmond will advise you about the documentation (income confirmation, down payment confirmation, etc.) you’ll need to supply upon conditional approval of your mortgage, along with providing any conditions that must be met for your mortgage to be fully approved. We will supply the best mortgage rates.