Hi,

I would like to share some specific reasons why a mortgage pre-approval is necessary. Some people are confused about the terms pre-approval and pre-qualification.

Pre-qualification is an initial evaluation of the creditworthiness of a potential borrower that is used to determine the estimated amount that the person can afford to borrow.

Pre-approval is an evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan from the lender, or the maximum amount that the lender would be willing to lend.

A person gets pre-qualified doesn't mean he could get an amount he demands. Here lies the importance of pre-approval. It would let you know how much you can afford or what maximum amount you will get. So, the reasons why the process is important are :

1. The competitive market
2. No pre-approval, no accepted offer
3. You need to know where you stand

The documents required are:
1. Pay stubs.
2. Last two years’ W-2s.
3. Last two federal tax returns.
4. Two months’ worth of bank statements of all types of accounts.
5. Your credit reports.

With these documents, you can consult professionals doing mortgage pre-approval process in Canada. If you are choosing the right lender, you will definitely get the maximum amount!