A mortgage prequalification is a crucial assessment by a lender of how much mortgage you can likely qualify for, based on your current finances. For Mission homebuyers, while it's not a final loan guarantee (that comes with underwriting a specific property), it's a strong indication of your borrowing capacity. This process helps you establish a realistic budget for the Mission market, demonstrates your seriousness to sellers, and often includes an interest rate hold, giving you a confident start to your home search.
How quickly can I expect to get prequalified?
With all necessary documentation provided, prequalification can often be obtained within a few business days, sometimes even faster.
What documents are generally needed for prequalification?
Typically, you'll need proof of income (pay stubs, T4s), statements for debts (loans, credit cards), and confirmation of your down payment funds.
Is a prequalification a final guarantee I'll get the mortgage?
No, it's conditional. Final approval depends on the lender's review of the Mission property you choose and no significant changes to your financial situation or credit.
Does getting prequalified negatively affect my credit score?
A prequalification requires a credit check, which is a “hard inquiry.” While a single inquiry has a minimal impact, working with a broker can help limit multiple inquiries.
How long is a mortgage pre-approval typically valid?
Pre-approvals, and any associated rate holds, are usually valid for 90 to 120 days, depending on the lender. This gives you a window to find a suitable home.