Have you ever been pre-qualified for a credit card, but then weren’t approved once you submitted your application? Or maybe you know someone that was pre-qualified for a loan, found their dream home, but then couldn’t get approved for the same loan they were pre-qualified for.
Both scenarios work the same way.
A pre-qualification, while similar, is not the same thing as a pre-approval. In order to save yourself a lot of time and frustration, it is important for you to know the difference before you even start searching for your home.
Once you have made the decision to purchase a home, your first call should be to a Winnipeg, Portage, or Brandon mortgage professional, or someone like myself or a member of the team at Ideal Mortgage Solutions who are all experienced in all three markets.
From there we will get the pre-approval process started so you have a better idea of what you are working with when it comes to your mortgage options.
We start with a pre-approval, rather than a pre-qualification because while a pre-qualification does give some insight into your financial situation, it is only an initial assessment of your current credit and assets and does not guarantee an approval.
A pre-approval dives deeper into your finances, analyzing your current income, assets, including bank accounts and any property and vehicles that you already own, debts and credit score. Unlike a pre-qualification, a pre-approval requires documentation for all this information and is the next best thing to an actual approval for your mortgage.
By obtaining a pre-approval, you will be more than prepared to begin the search for your home. You will now have a solidified price range to search within and a good idea of what your monthly mortgage payments will look like.
A pre-approval also holds a great deal of weight with sellers because they are confident that you will be able to secure financing should you decide to purchase their home. This is very important when making offers and negotiating prices.
Don’t get caught thinking you will be approved for your loan, only to find out that approval falls through! Call me today so we can start the pre-approval process on your Winnipeg, Portage, or Brandon mortgage and get you one step closer to purchasing the home of your dreams!
Source: http://www.whichmortgage.ca/article/understanding-preapprovals-118340.aspx
