What do I need to know about Mortgage Credit Approval?
Credit approval is an application for financing that helps determine which homes are in your price range. To get credit approved, you provide the same paperwork you would when making a formal loan request. The Loan Officer will ask you for employment and income verification and deposit and loan information. They will also pull a credit report to assess your credit history.
Credit approval assures your application is approved for a loan, but is not a mortgage contract.
Your Loan Officer will use the financial information you provide to estimate the max mortgage you should aim for. Typically, your monthly house payment should be around 28 percent of your total gross monthly income. Your total monthly debt, including your estimated house payment and other monthly debts, should not be more than 36 percent of your gross monthly income.
Of course, these figures vary between lenders and loan products. How much you can afford also depends on the interest rates and your down payment at the time of purchase. To get an idea of what you can afford, talk to a Loan Officer today. We’ll work with you to find a solution that fits your lifestyle.