Are you thinking about buying a house at auctions? Do you have enough cash in your bank account to get your property investment financed at auctions? In such a scenario, it is very important for every investor to get his/her all ducks in line before visiting auctions for purchasing a house.
Mortgage preapproval is one such process? In other words, it is important for investors to get their mortgage preapproved. But what exactly is mortgage preapproval? Why mortgage preapproval is important before buying a house at auction? There are many such things you should know about mortgage preapproval.
What is Mortgage Preapproval?
It is a letter issued by your lender or the financial institution indicating the amount of mortgage/loan you qualify for. Lenders or financial institutions issue this letter after checking your financial history thoroughly. It helps you determine the investment property for sale you should purchase at the London property auctions.
Why Mortgage Preapproval Matters?
A lot of investment properties come to auction for sale. Every investor selects the property he/she is interested in. Honestly, there will be more number of investors interested in the investment property of your choice.
In such a situation, mortgage preapproval helps you get on top of your competition at the London property auctions. Mortgage preapproval also helps you find a competent mortgage lender ready to work closely with you to help you find a home loan and interest rates and other terms that cater to your property investment strategy requirements.
The Documents You Will Need for Mortgage Preapproval:
· You will need the documents stating your personal information. For example:
o Your driving license
o SSN (Social Security Number)
o Personal contact information such as address, phone number, and e-mail address etc.
· Recent bank account statement or statement about any investment account.
o Documents stating your employment information. For example:
o Where have you worked?
o Where are you currently providing your professional services?
o Paycheck stubs
o Income tax forms for the last couple of years
· Your total monthly income and expenditure including all sorts of bills paid by you.
· Documents indicating your actual overall financial condition. This list of documents contains documents stating your record about your investment assets and liabilities etc.
· In case you are self-employed, you will also need to present profit and loss statement.
· Documents stating your rental property income, if you have.
· Canceled check to indicate your payment history.
· In case you are using some kind of gift received from some relatives or friend to cover the down payment, you will also need to present a gift cover letter.
The Bottom Line:
The knowledge presented in this article is limited to the following things:
· What is mortgage preapproval?
· Why Mortgage preapproval is important?
However, these are not the only three things investors should know about mortgage preapproval. This is right! There a plenty of things that every investor must know about mortgage preapproval before attending London property auctions to get their property investment financed easily at auctions.
In case you want to know in depth about it, call us right now to book your tickets to our property seminars in UK where our experienced property investment agents in London answer all of your questions in depth in this regard.
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