Get Mortgage Financing Pre-Approval or Equivalent

Mortgage Pre-approval is an important ingredient of almost every successful home search. You don’t want to fall in love with a property only to find out it’s outside your price range.

A Mortgage preapproval is a document from a bank or other mortgage lender. It states how big a mortgage they suggest they MAY BE willing to give you. Unfortunately, it is usually NOT a reliable document. It is conditional on checking many details and an appraisal of the property. However, if you are in a “bidding war” the strength of that pre-approval is absolutely critical. The buyer must know that they can afford what they are offering. Also, the seller must be confident that the buyer can be come up with the money.

Your Mortgage Advisor

As a REALTOR I am NOT qualified to give mortgage advice. That must come from a Mortgage Broker/agent or the loan officer at a bank. There are BIG differences between them and it is important that you understand this.

The Bank employs the Loan Officer. He/she is trained to determine which of their mortgages best matches your needs. They are regulated by the Banking rules and responsible to the bank.

The Mortgage Broker or Agent is regulated by Federal and Provincial Laws. They offer mortgages from several lenders. They have a greater variety of mortgages to offer, including Bank mortgages. Furthermore, you may be able to arrange for very prompt appraisal and checking of details. So the conditional period can be minimal.

Regardless of the source of the finance commitment. It is important that the buyer makes no significant financial commitments between approval and completion. Doing so may void the mortgage commitment.

Mortgage Pre-Approval Benefits

• It gives you the peace-of-mind of knowing you can afford homes you view on the market, and won’t have problems arranging financing.
• It’s a sign to sellers that you are a serious, prepared buyer – which gives you the edge when making an offer.

You can arrange for a Mortgage Pre-Approval with your bank or other lender, or by working with a good mortgage broker.

Mortgage Pre-Approval is usually conditional on underwriting approval which may be quick or slow. An offer supported by a solidly prequalified mortgage approval is much stronger than a typical letter from a Bank. I’m well-connected in the local real estate scene, so if you want me to recommend a reputable broker or lender, please contact me.

How Much Home Can You Afford?

Banks and lenders use specific criteria to determine how much of a mortgage they’re willing to offer you. They look at your income, expenses, credit history and employment status. They consider the down payment you plan to make on a home. Lenders charge more or less interest depending on your source of income and favour particular borrowers. It is important to match lenders with borrowers. Also, for the lender to thoroughly prequalify you BEFORE you write an offer.

It may seem like a scary process, but it is actually straightforward with guidance. You’ll be glad that I’m helping you find a lender that prepares in advance of an offer and moves very quickly on confirmation.

For an indication of what a mortgage will involve, use this program:

Total Amount ($)

Down Payment ($)

Interest Rate (%)

Amortization Period (years)

By knowing what you can afford, you can confidently shop within that price range. For example, if you qualify for a $250,000 mortgage, and you have another $100,000 available as a down payment, you can look for homes in the $350,000 range.

Have questions about arranging financing? Please Contact me

uge benefit to your offer and every plus is important.

By knowing what you can afford, you can confidently shop within that price range. For example, if you qualify for a $250,000 mortgage, and you have another $100,000 available as a down payment, you can look for homes in the $350,000 range.

Have questions about arranging financing? Please Contact me