The Durham Region Homes For Sale By Owner website offers fast mortgage approval. Should you be pre-qualified or pre-approved? Should sellers be pre-approved if they are purchasing again?
To start the mortgage pre-approval process, the first figure that you need to determine is your total gross income. This can be in the form of employment, child support, pensions, etc. All income has to be from sources that you can prove and is stated on your tax return.
The second figure you need to come up with is your total debt load. This would include monthly payments of child support, loans, credit cards, etc.
Using these 2 numbers and the current interest rate, a formula is used to determine the size of mortgage you qualify for. Add to this any down payment money you have available, and you now have the total purchase price of a home you are eligible for.
A pre-qualification for a mortgage can be done in minutes. A mortgage consultant will take your numbers, do some quick math and have an answer for you.
A pre-approval on the other hand takes a little longer. A credit check will be conducted. You will be required to supply paperwork to support your claims of income and debt load.
A pre-approval is preferred for many reasons. Innocent errors can be made when trying to remember income and debt load. The results of a credit check can sometimes affect the rate of interest of the mortgage. In other situations, a co-signer may be required to finance a property at this time.
A real estate seller should be pre-approved for mortgage financing prior to putting their property up for sale. Although they may have a mortgage now, after running through a pre-approval, it might be determined that the move they want is not possible.
A pre-approval can benefit a buyer or seller in many ways. It creates peace of mind. They can proceed with the process knowing that the financing is the least of their worries. A pre-approved mortgage swings a lot of weight when it comes time to submitting an offer to purchase on a home.
HomesByOwner of Durham Region offers free mortgage pre-approvals. You don't have to be a seller on our website or a buyer of one of our listings.
Have a look at our Durham Region Homes For Sale By Owner Website.
