If you are shopping for your dream property and are serious about buying, then a mortgage pre-approval is strongly advised for any potential buyer. An approval of a loan is essentially a provisional commitment of a mortgage lender to lend you money based on the details you supply them, and conditional upon you meeting certain requirements. Being approved for a mortgage normally offers many benefits when you search for a property, including; greater price bargaining power, knowing the price you can afford, estate agents treating you more seriously and so on.
So if you would like to get pre-approved for a loan, you need to take care of the process that is normally associated with a mortgage pre-approval, as outlined below:
- Your loans advisor and you talk through to determine your financial strategy and your needs: this includes discussion on the basic mortgage points such as the loan amount required, down payment, purchase price, etc.
- Your mortgage advisor will inform you about the different options available (fixed or variable rate, term interests, payment options, amortization, etc.). And you will discuss the most suitable mortgage product that best fits your needs.
- Your loans advisor will then take your request, along with your personal and financial details, details of your job, your income, your assets, your down payment (if applicable) and your liabilities.
- You give the go ahead for the lender to obtain a copy of your recent credit report to allow the lender to run some credit checks on your personal profile.
- Your financial advisor will advise you on what documents you should provide (confirmation of income, confirming the down payment, etc..) At this stage, a conditional approval of your loan is offered. Where necessary, conditions must be met so that your loan is fully approved.
You are under no obligation to complete once your loan is pre-approved, but you should still be satisfied with the amount and terms of your pre-approved amount that you can borrow. Therefore it is important that you review all your personal expenses and you have an idea of your future expenses, before talking about pre-approval with a financial advisor.
To discuss your needs for a commercial mortgage or to obtain a pre-approval on a residential mortgage, go to the buy to let mortgage web site.
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