Pre-approvals made simple

March 24, 2017 | By | Add a Comment

The ins and outs of pre-approvals

When you’re house hunting, it’s a great idea to know the amount of mortgage you qualify for, your monthly payments, and that your interest rate will be held for a specified period of time i.e. 120 days. This way you can shop within your price range, you don’t have to worry about rates rising, and both realtors and sellers will know you’re serious. Be realistic though and make sure you can afford that pre-approved amount; review all of your homeownership expenses and your monthly budget.

Not all pre-approvals are the same

And also note that a preapproval is not a mortgage approval. Some are just a simple rate guarantee subject to lots of conditions and a later approval.  For a full pre-approval you need to submit your application and documentation so the lender can qualify you, and even then it’s a good idea to have a financing condition in your purchase offer because your property will need to be assessed by your lender. Be sure to not make significant changes after getting the preapproval i.e. changing jobs, adding debt or missing payments, co-signing another loan, or using your down payment money.

Contact me today and get off on the right foot in your homebuying journey!

For more info on first-time homebuying and pre-approvals, click here to read more.

Filed in: First Time Homebuyer, Mortgage Planning, Purchase | Tags: ,

About the Author (Author Profile)

I’m a Toronto Mortgage Broker. My focus is on saving people time and money in financing and re-financing their homes. Am passionate about helping people make informed choices, giving back, and helping to improve financial literacy in Canada.

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