Get a Mortgage Pre-Approval

  • A pre-approved mortgage is highly recommended before you start shopping for a home. Many realtors will ask if you’ve been pre-approved.  A lender will look at your finances and calculate the amount of mortgage you can afford. Then the lender will give you a written confirmation, or certificate, for a fixed or variable interest rate. This confirmation will be good for a specific period of time (typically 120 days). A pre-approved mortgage is not a guarantee of being approved for the mortgage loan.

 

  • Even if you haven’t found the home you want to buy, having a pre-approved mortgage will help keep your price range and payment objectives within budget.

With the mortgage rules changing it is very important to complete an application form and acquire a pre-approved mortgage.

If you are purchasing a property with less than 20% down payment the mortgage rule change that will most affect you is the amortization change... as of July 9th, 2012 the max amortization available is now 25 years.

I look at this as being a double-edged sword... it is good in the way that you will pay off your mortgage sooner, however, on the other side it will affect your ability to qualify for a larger mortgage amount.  This is one of the main advantages of being pre-approved.

During the pre-approval process the following is covered:

  • Complete an application form
  • Strategy session to review product options
  • Budgeting for closing costs
  • Review of your payments based on your target purchase price zone
  • Rate hold

It is important to note that just because you have a rate hold it does not guarantee you that you are qualified for your mortgage and you can remove your subject to financing clause.  When lenders provide a rate hold it is just that, a rate hold which will secure a rate typically up to 120 days which protects you against rate increases.  A rate hold does not guarantee you your mortgage is approved... before lenders provide you with an approved mortgage they must review and accept the property you are buying and it must meet all of their lending guidelines.  The main guidelines and concerns that have come into question are buying on leased land, a conflict occurs with the appraisal, and the disclosure statement makes note of asbestos.  This is why a subject removal period is available which gives you the time to fully complete and approve your mortgage, complete an inspection, and make any changes needed to your contract that may come to your attention.

So where do we go from here... the first step is to complete an application form.  The easiest way to do this is to contact me direct.  The first step of the process typically takes no longer than 10-15 minutes.

  • Refinance
    Home Equity
    Debt Consolidation
    Purchase - Looking at Homes
    Purchase - Found a Home

Is your mortgage a finely tuned athlete or is it in need of a quadruple bypass? Find out here!

Are you a ‘repeat’ or ‘first time’ buyer? Need help calculating your down payment? Get prepared for your next purchase!

Re-finance is not a bad word! Reduce your rate, lower your payment, consolidate high interest debt.

BOC Prime Rate
3.00
Line of Credit
3.50% (P+.50%)
VRM 2.40% (P-.60%)
1 Year
2.74%
2 Year
2.54%
3 Year 2.74%
4 Year
2.74%
5 Year
2.97%*
7 Year
3.79%
10 Year
4.29%
Rates as of May 30th, 2014.
*Some conditions may apply to above rat
es.