What is a mortgage pre-approval? Why would you get a mortgage pre-approval? Why not just offer on a home and then get your mortgage? That would be a huge mistake. Mortgages are very regulated, and therefore it is best to be proactive. If your mortgage pre-approval is done properly, then many documents are collected in advance, and you know your spending power before you go house shopping. The best mortgage pre-approval is when you have not only given a bank your details, but they have also pre-checked the documents that back up your application. If you have a 2 minute on line pre-approval, you are at a high risk of being declined once your application goes live.
With a pre-approval:
While a preapproval with pre-checked documents is more secure of a deal than a two minute on-line application, you still need to get full unconditional approval to get the mortgage funded. The full approval process can be stressful, as the bank not only has to approve you as a borrower, but also the property you are buying. Therefore, if you are getting a mortgage to pay for part of the property, then it is always advisable to put a “Subject to Financing” condition on your offer. Your Mortgage Broker and Realtor are your experts to help you through the process.
When you get mortgage pre-approval status, go shopping! Enjoy the thrill of seeking out a new home, weighing your options, and finding the perfect place for you. This is not something that people get to do often. Since you have done the pre-approval process, you will feel more confident once you find a house to be able to write up an offer (conditional, of course).
A pre-approval is based on a snap shot in time. You must not take on any new credit, change any loans, or miss any payments, as any of these things can make your pre-approval null and void. Here is a list of common mistakes that people make that can negatively affect their pre-approval in Edmonton:
Give your mortgage broker a call today to find out what you can get pre-approved for! Happy house hunting!