Back to Blog
6 Jun

Why Get Pre-Approved? Your Barrie Mortgage Professional

General

Posted by: Ben Oakes

If there is one thing that I have learned, in order to be successful as a mortgage agent you have to put your client’s needs first,which means being completely transparent. As a mortgage agent with Dominion Lending Centers, I ensure my clients understand every aspect of the process of choosing the right mortgage plan. I have been and always will be accessible to my clients for the life of their mortgage. Committing to annual reviews of my clients’ mortgage plans and making adjustments if necessary is just another part of the job I love and am committed to.

Why do i advise a pre-approval for my clients?

By getting pre-approved you will be able to know the exact maximum purchase price that you can afford which will save you time as you will now know which homes fall within your budget when browsing. This also results in a quicker turnaround time on processing your approval once you have put in an offer on your new home. Furthermore, getting pre-approved also provides you security by holding you at an interest rate for a given time in the case that mortgage rates should increase.

DO YOU HAVE PRE-APPROVAL, A PRE-QUALIFICATION OR JUST A RATE HOLD?

Rate hold (good) A rate hold is just that. It guarantees a specific rate for a certain period of time which is usually 120 days. That doesn’t take into account your ability to qualify for the mortgage. What happens is basically a lender will hold that rate but you will still have to meet their qualifications after you find a home.

Pre-Qualified (better) A pre-qualification application is completed and based on the information you have provided the mortgage broker with and will determine the amount of a mortgage you will qualify for. There is no supporting documentation and most of the time there is no review from your credit bureau.

Pre-Approval (best) A pre-approval is a thorough analysis of the home you can afford based on your verified income, a credit bureau analysis, detailed assets, debt review, and confirmation of down payment. If you want to shop for your new home with confidence I highly recommend getting a pre-approval. Getting all the documentation upfront will also provide a quicker turnaround time on processing your approval once you put in an offer on your new home. It also secures an interest rate for a given time in the case that mortgage rates should increase.

 

*It Pays To Know*