Expectation of a Pre-approval
Many people believe having a pre-approval is the same as having a mortgage commitment or full approval, might as well have the keys and money in the bank! That is an understandable expectation because it is largely what is advertised and forced on many.
The Reality of your Mortgage Pre-Approval
In reality; your mortgage pre-approval is a 30 second automated algorithm that looks at 3 Factors. 1)Gross Debt Servicing, 2) Total Debt Servicing and 3) Credit Score. These ratios and the Credit Score can likely be misleading if even the slightest bit of information is entered incorrectly, simply ‘guessed’, or if your credit report isn’t looked over carefully/at all. Interested in learning how to prevent this from happening? Keep reading…
How a mortgage broker can help
A mortgage agent is going to spend time with you, gathering all the details to complete your application thoroughly. They will pull your credit report and identity if there any hiccups or potential road blocks to be aware of. They will request your income documentation up front to better qualify you and to minimize the chance of surprises down the road when submitting the application for your actual mortgage approval.
Lastly, if you don’t qualify for a home, a mortgage broker can help you determine what needs to change and what you need to do in order to qualify in the future. They are working with you and for you, not the bank.
Why is this this so important?
Gathering the information and getting to know you is apart of finding the right mortgage for you. We want to know about your goals and get a better understanding of what you’re looking for, both long term and short term. It will help us qualify you to start house shopping with confidence and have a better chance at turning into a live approval.
This is why it is important to talk to a mortgage agent, about getting a proper pre-approval and pre-qualification. You’ll have a better sense of what to do and you will truly get qualified in 25 minutes vs. a 30 second pre-approval that really doesn’t take the whole picture into account.