How to Pre-Qualify for Mortgage without Hassle
When you are house-hunting, you should know how much you can afford; narrow down your search, and hold the rate for 90 days. At Urgent Mortgages Inc., we offer you a no strings attached, free consultation to get you pre-qualified from a bank. We only get paid when you get the mortgage.
Here’s why you need a mortgage Pre-Approval
- It lets you know how much mortgage you will qualify for and what you can afford as the mortgage payment on your new house.
- The rate holds up for 90 days and shields you from any rate surges.
Urgent Mortgages Inc.’s Mortgage Pre-Approval gives you the following benefits:
- It is Free, No Ties attached No Obligation and No Catches.
- It is Quick and Prompt.
- It is Reliable
- There is no compromise on client Privacy as your information is kept on secure servers
- Lowest possible rate
Swift, Easy, and Efficient – Short Application Form Takes Only Minutes to Complete
At Urgent Mortgages, we do not add or take any information from your documents; the pre-approval you get is solely based on the information and documents you provide. We package and present your information to the lenders so that you get the best rates possible by being completely transparent with us.
We work with you as a team to get the best financing for your future home. The professional brokers at Urgent Mortgages shop for the best available mortgage rates on your behalf. You and your safe future are our responsibility, the clients always come first, and that’s the promise of the Urgent Mortgages Team.
Here are the most critical factors that lenders look at when approving your mortgage:
- Debts/Monthly Expenses
- Employment history
- Credit history
- Client’s Identity
- Property value
- Down Payment
Our experienced brokers know what the lenders are looking for, and that makes our work easy. We know how to package your application to get you the approval quickly and with the best possible rates. We are always there to help our clients in the application process:
- Lower ratio of housing expense ratio should be lower than 32% (GDS. The maximum allowed is 39%)
- A lower debt-to-income ratio of less than 40% (TDS. The maximum allowed is 44%))
- Steady income – a consistent job history
- Excellent credit score
- Property’s worth
To the lender, nothing matters more than your income and it goes a long way in getting you a favorable mortgage rate. Lender’s first question is regarding your income i.e., how much of your income will be spent on the mortgage. This determines how easily you will be able to make your mortgage payments and afford your house.
Lenders will generally look at all sources of your income, everything from dividends to overtime to commissions, etc. The lenders even account for your seasonal or part-time income if you have been at it for a couple of years.
Apart from your income, the lenders will also scrutinize your debts. Typically an individual’s debts include personal loans, child care, car loans and leases, lines of credit, as well as credit card debt and your existing mortgage. These are the payments you are making each month, and they are termed as your debts/monthly expenses. The residual would be available to make your mortgage payment and determines the amount of mortgage you can qualify for.
In addition to your income and debt, your employment history helps significantly in securing a good mortgage rate. Your history of employment is an indicator of stability. Longer duration at a job shows the lenders that you will continue to be able to make payments.
You need to provide a letter from your employer, listing the number of years you have worked and the amount of salary you receive. If you have been at your job for less than two years, you may need to submit additional documents like your Notices of Assessment issued by the Canada Revenue Agency for prior years.
Here are some questions your lender is likely to ask you:
How long have you had this job?
- Have you changed your occupation in the last two years?
- Any gaps in income in the past few years?
- Will you continue with your current job?
- Do you have a co-borrower?
Just like other points discussed earlier, your credit history is of extreme importance. Your debts and income history tell the lender about your ability to make ongoing mortgage payments. Similarly, your credit score shows the lender how reliable you are and how well you have paid off your other debts and loans.
A large number of inquiries on your account impact your credit score negatively. However, there are companies who provide credit report free of cost and without affecting the credit score. As your advisers, Urgent Mortgages Inc. brokers suggest that you get a copy of your credit score from one of those companies before even applying so that you will know your credit score. We will explain to you what products you can qualify for.
Identity of the Borrower:
Identity theft can be an issue at times without you ever becoming aware of it. A review of your credit report can show you if you have been exposed to any such issues. Urgent Mortgages will need two pieces of photo identification as well as a meeting in person to verify your identity.
Value of the Property You are Buying:
The lenders want to make sure that your property is actually worth the price you are paying. The property value is their assurance that they will be able to recover their loan should anything go wrong in the future. Banks rely upon and order a property appraisal from “approved” appraisers prior to lending money.
Down Payment reflects your equity in the property. Higher the down payment lessor the risk of default for the Lender. The amount of down payment determines if it is a high-risk mortgage and if it would require credit insurance. It strongly impacts the terms and rates of the mortgage. Higher the down payment/equity in the project, better the rates, and terms. Lenders want to know the sources of the down payment and duration the money has been in the borrower’s account unencumbered.