A pre-approval is what makes an offer credible in Surrey. Here is what lenders require, the documents to have ready, and how long the process actually takes.
A mortgage pre-approval is the first real step in buying a home in Surrey, and in a market where good listings move quickly it is what separates a serious offer from a hopeful one. Here is what lenders ask for, what to send, and how long it takes.
What a pre-approval actually commits to
A lender reviews your income, credit and down payment, then tells you what you can likely borrow, usually holding a rate for three to four months. It is not a final approval, because the property itself still has to satisfy the lender. Assuming otherwise is one of the five mistakes that costs Surrey buyers their deposits.
Requirements
You need income that can be verified, a credit history in reasonable shape, and a down payment you can trace to its source. The minimum is five percent on the first $500,000 of the price. You also have to clear the mortgage stress test, which qualifies you at a rate higher than the one you will actually pay.
Documents to have ready
- Photo identification
- Recent pay stubs and a letter of employment
- Two years of T4s or Notices of Assessment
- Ninety days of bank statements tracing the down payment
- Details of any loans, credit cards or support payments
- If self-employed, two years of tax returns and business financials
How long the process takes
With the paperwork assembled, a pre-approval usually comes back within one to two business days. The delay is almost always collecting documents rather than the lender deciding. Before you apply, test a realistic payment in a mortgage payment calculator, so the figure you ask for is one you would still be comfortable with.
Deepinder Sidhu arranges pre-approvals from offices in Surrey and White Rock. Speak to a mortgage advisor in Surrey before you start viewing, not after.
