Know Your Mortgage Prequalification Value

Do you have a question how to get a Mortgage preapproval and how much money I suppose to spend on any house mortgage?

You can get answer for these questions by just filling out the mortgage prequalification forms. If you have the pre qualification these forms will state you how much you are qualified for else you can get an advice on how to mend yourself for the Mortgage preapproval.

Pre qualify Forms

You can fill out the pre qualify mortgage forms to know your eligibility for the mortgage pre approval. It will not take more than 5 minutes.

Very first step in the mortgage loan approval process is mortgage qualifying. This process enables you to know how much money your mortgage lender can give you. These lenders will use certain national guidelines and determines the total money they will lend to you. When it comes to the standard some mortgage brokers and lenders choose to behave lenient while other lenders are strict. Following are some of the Mortgage prequalification measures that are required for getting the Mortgage preapproval.

mortgage preapproval

  • Applicant’s employment history
  • Applicant’s Credit score and History
  • Applicant’s Monthly Income

One of the major factors that lead to foreclosure in many cases is unemployment. So all mortgage lenders are very strict with the rule: “applicant must have an employment history of 3+ years with the same company or the same field”.

You should have a stable regular income to get qualify for the mortgage preapproval. For instance, if you are self employed and getting 35% better interest from your business then your mortgage lender will consider your profits and measure the cash flow to ensure whether you have a mortgage prequalification.

Maintaining a good to excellent credit score makes the mortgage prequalification process easier. When you apply for a mortgage loan your lender will order a copy of credit history and credit score from the major credit bureaus. These credit bureaus will gather the financial reports from the banks, mortgage broker finance companies, retailers and various public sources. They will gather this kind of information on all customers who have obtained a credit card, vehicle loans, personal loans, mortgages and secured credit cards.

You can get the credit report at free of cost. But if you want to know your credit score then you need to pay something from your hands. Normally credit score is calculated by using the information printed on your credit report. Calculation of credit score used to vary from one credit reporting company to other. Anyhow it will be computed as:

Your past payments will account for 40% in your credit score.

Your credit card balances and all other outstanding balance amounts will account for 20%

Remaining percentages will be determined based on the credit inquiries, monthly payments and so on.

Normally credit scores are ranges from 300 to 850. Higher the score better the better chances of getting mortgage preapproval. You can use mortgage pre approval calculator to know your mortgage prequalification.

Mortgage pre approval calculator

Just like prequalify forms Mortgage pre approval calculator helps you to decide how much one can afford to pay the monthly mortgage amount depend on their current income, present and future liabilities. By just filling the entries in the pre approval calculator you can get the exact figure for which you can actually get a mortgage pre approval.

firstfoundation.ca provides you one such calculator you can use it at free of cost.

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