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Mortgage-Matters

Step 1 is pre-approval

The real estate market is on steroids right now so is a mortgage pre-approval important?

The short answer is yes and the long answer is yes.

It is definitely important, so you have the confidence to move forward with your house hunting. A pre-approval is for you and not the lender.

The 60-second mortgage app you used online is not a pre-approval and can loosely be called a
pre-qualification.

The term pre-approval is somewhat misleading as we cannot guarantee that you are 100% approved for your financing because there are many variables that will factor into your final mortgage approval including the lender reviewing the property you are purchasing.

(Please read that again if you are considered an unconditional offer on a property.)

A mortgage pre-approval can give you the confidence to know that you fit within the guidelines of a mortgage lender and also a mortgage insurer if you require an insured mortgage for your purchase. It will also establish a realistic budget for your new purchase.

We are going to review your income documents and confirm the source of your down payment funds. You will know if there are any areas of concerns and we will discuss a plan to move forward.

Here are the benefits of getting pre-approved.

  • You will know your price range before you start house hunting.
  • Your realtor will know exactly what type of property you should be looking at so that can save you both time and also narrow down your home search.
  • Being pre-approved can give you an edge over other buyers as you may be able to close quicker and that might be important to the seller.
  • There aren’t going to be any surprises as you will already know how much you require for a down payment, closing costs and how much your monthly mortgage payments are going to be.
  • A pre-approval also gives you the benefit of securing your interest rate for up to four months. This is a great benefit especially if interest rates are predicted to increase.

Here’s another tip – you don’t have to wait for an appointment at your bank to obtain a mortgage pre-approval. The first request I often receive is for a meeting and I am always happy to accommodate my clients, but an in-person meeting is not required for a mortgage pre-approval.

Most are happy to find out that we can complete the process via a secure online client portal, telephone and email including collecting the required documents.

This is generally more convenient for my clients and a great time-saver which can result in the pre-approval being completed in one day most times. It’s a simpler process than most think.

I can complete your pre-approval most likely before you even get to an appointment with your bank.

Once you have a pre-approval in hand you can then start your home hunting with confidence.

Mortgages are complicated these days and the last round of new mortgage qualification rules are making it more difficult for all to obtain financing so it’s better to go through the simple process of a mortgage pre-approval before moving forward with placing an offer on a new home.

It will save you time and stress.

A mortgage pre-approval is recommended not only for first time home buyers but also for current homeowners who may be considering selling and moving to a new property.

I’ve had many clients be surprised that it’s no longer as simple as it once was to obtain mortgage financing. If you are listing your property for sale please speak to a mortgage broker first.

Before you fall in love with a home you should know if it’s within the reach of your finances. The first person you should call before reaching out to your realtor is a professional mortgage broker, so please give me a call at 1-888-561-2679.



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About the Author

April Dunn is the owner and a Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects. She has been assisting clients to purchase, refinance or renew their mortgages for over 20 years.

April has experience as a Credit Union manager, a Residential Mortgage Manager with a large financial institution and as a licensed Mortgage Broker. By specializing in Strategic Mortgage Planning she has the tools available to build a customized mortgage plan, with the features and options that meet your needs.

April provides a full range of residential and commercial mortgage financing options for clients all over the province of British Columbia and across Canada through the Mortgage Architects network.

Contact e-mail address: [email protected] or by phone at: 888-561-2679.

Website:  www.reddoormortgage.com



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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