I wanted to write about some key points regarding pre-approvals and rate holds. Feel free to contact me if I can answer any questions or provide clarification with the below. The below is what separates the professional mortgage brokers from the so called ‘specialists’. Thank you again for your attention during my presentation.
l have noticed that instead of a pre-approval many receive a rate hold instead. A rate hold is simply stating what a client thinks his or her income is and they are provided a mortgage rate (in other words, it is a false sense of security). A pre -approval includes, a credit check, reviewing income documents and analyzing commercial debt if applicable.
The pre-approval process is simple:
- If you’re a salaried employee, bring your pay stub with you
- If you’re self employed, you need your previous 2 years taxes
*if you feel like you are providing a ton of documents and information, you’re doing it right.
Questions you need to ask your mortgage professional:
- Calculate my mortgage penalty using today’s rates.
- Does my lender have posted – rates? – If you’re lender/bank had posted-rates, do not get a 5 year fixed mortgage.
- Is there a sale clause? Can I only get out of my mortgage if I die or sell my house?
- What is your commitment to me and your process if there is a future savings opportunity with a competing lending institution? Will you inform me?
- Do you have an Assistant/Associate that I can contact if I can’t reach you?