Pre-Approvals

Pre-Qualified, Pre-Approvals… What’s the Difference?

When you qualify for a mortgage, a lender provides an idea of your potential financing. Moving beyond pre-qualification, pre-approvals offer a concrete commitment, providing a clearer understanding of the actual amount you can borrow for your home purchase.

Additionally, with a pre-approved mortgage, a lender commits to lending money, subject to conditions like property valuation. This step is crucial when seriously shopping for a home.

Why should you obtain pre-approval for a mortgage?

House-hunting becomes easier with mortgage pre-approval:

  • Firstly, save time by viewing only affordable homes.
  • Additionally, manage money better with known monthly payments and down payment.
  • Furthermore, real estate agents serve you better, recognizing your serious intent.
  • Moreover, sellers consider your offer more seriously with solid financial backing.
  • Besides, pre-approved status provides negotiating power when dealing with a seller.
  • Notably, your mortgage rate is locked for 120 days, guarding against increases.
  • Furthermore, there’s no cost or obligation to accept the mortgage.
  • Finally, Capital Mortgages responds within 24 hours to start your online pre-approval.

What happens in the pre-approvals process?

You and your mortgage specialist will discuss your financial strategy, needs, mortgage amount, down payment, and purchase price.

You’ll explore various mortgage options (fixed vs. variable rate, interest terms, payment options, amortization) to find the best fit.

With your consent, your mortgage specialist will take an application, requiring details on employment, income, assets, down payment (if applicable), and liabilities.

You’ll grant the lender permission to obtain a credit bureau report.

Upon conditional approval, your mortgage specialist will advise you on necessary documentation (income confirmation, down payment confirmation). All conditions must be met for full mortgage approval.

Be prepared for pre-approval.

You incur no obligation when pre-approved, but you should still feel comfortable with the amount and terms. Thus, it’s crucial to review personal expenses and anticipate future ones before discussing pre-approval with a mortgage specialist.

 

 

Are you new to Canada and looking to buy a home? Capital Mortgages has the experience and the team to help you get into your new home. Contact us now.

CONNECT WITH A MORTGAGE ADVISOR TODAY!