Pre-Qualification & Pre-Approval
If you are looking for a new home, be sure you are pre-approved. With a mortgage pre-approval, a licensed mortgage professional can do a more complete verification prior to sending you shopping for a home, and with that done, the dollar figure you are going shopping with is actually what you can spend.
Getting Pre-Qualified & Pre-Approved
When it comes to getting a mortgage, no matter what your goal is, there are a few things you can do in advance to make the mortgage process easier and more effective.
Your first step is to consult with your mortgage professional to get Pre-Qualified.
Your next step when you are ready to move forward, is to have your mortgage professional secure a Pre-approval for you.
What is the difference between a Mortgage Pre-Qualification vs a Mortgage Pre-approval?
In short, a pre-qualification is an estimate, while pre-approval is a formal commitment subject to conditions.
Mortgage Pre-Qualification
Mortgage Pre-Qualification is a n informal estimate of how much you may be eligible to borrow based on self-reported financial details (income, debt, assets).
The purpose is to provide the borrower with a general idea of your affordability and what you could qualify for. It is quick, no credit check required, but isn’t a guarantee.
Your pre-qualification will be based on your specific chose rate type, term and amortization as these impact qualifying rules and requirements set in place by the governments regulatory body.
Mortgage Pre-Approval
Mortgage Pre-Approval is a formal commitment from a lender indicating how much they’re willing to lend and at what rate, based on provided financial information.
A prudent and experienced mortgage broker that cares about the best interest of their clients will always ask for your supporting documentation upfront to review all pertinent details and information prior to submitting it to a lender.
The purpose is to provide the borrower with exact knowledge of your affordability and what you could qualify for. It requires due diligence and more time, with a full credit check. It also strengthens your buying power and locks in a rate to guarantee the rate for typically for 60–120 days to ensure you are protected in an increase interest rate environment.
Your pre-approval will be based on your specific chose rate type, term and amortization as these impact qualifying rules and requirements set in place by the governments regulatory body.
The pre-approval will be conditional on various conditions being met.
Additional benefits to obtaining a pre-approval before starting your house hunting and purchase negotiations:
- It confirms the maximum amount you can afford to spend, making you a more confident home buyer.
- It can secure you an interest rate for 90-120 days (lender’s vary) while you shop for your new home, protecting you in case rate go up.
- It lets the seller know that securing financing should not be an issue for the potential buyer. This is extremely important for competitive markets where lots of offers may be coming in.
Protecting your Pre-Approval.
Once you have successfully negotiated the purchase of your home, we’ll proceed to secure the final mortgage approval commitment in accordance to your specific needs, preferences and requirements.
Final approval will based on there being no significant material and financial changes to the borrower financial status and circumstances.
To protect your pre-approval and also final approval for that matter:
- Keep your employment and income status the same until after your purchase closing.
- Do not increase your debt load or make and significant changes to your financial status.
- Keep your credit and credit score the same or better. Do not miss any payments.
- Consult with your broker if your downpayment strategy changes to ensure downpayment stay verified for source and origination to laws and acts required for funds to be used in a real estate transaction.
Apply Now
We do not pull your credit with your online application. Only once we have completed your mortgage consultation, completed your credit and needs analysis, have provided you with a pre-qualification and satisfactory solutions – and when YOU are ready to proceed and instruct us to do so, we’ll pull your credit report as required to secure a mortgage pre-approval rate hold commitment to protect and benefit you. Apply today!