Why is obtaining a pre-approval considered important in the mortgage application process? This will allow you to plan on what you can afford to purchase. It will also give you comfort and knowledge knowing that you have been approved for financing. Can getting a mortgage pre-approval have any impact on my credit score? Not really. If you shopped around to a large number of lenders it could have an effect. Dealing with a broker who pulls one credit check and can use that to shop the market, there is no effect. What is the most effective method to secure a mortgage pre-approval? Speak to a mortgage agent/broker. They have access to many lenders who have differing qualifying standards Is there an expiration period for mortgage pre-approvals? Usually 120 days but this can be renewed
Pre-Approved Mortgage Solutions Toronto
In Toronto, securing a pre-approved mortgage puts you ahead of the competition. A pre-approval process allows a prospective homebuyer to know whether or not they meet a lender’s criteria for a mortgage. While it doesn’t guarantee that a mortgage will be secured, it can certainly speed up the process. While this is not mandatory, it allows a homebuyer to be more realistic about their chances of securing a loan. The most important advantage, however, is that it protects the homebuyer from a spike in interest rates. This gives the homebuyer time to secure a good mortgage with peace of mind.
Timeframe
A pre-approval usually lasts from 90 to 120 days and guarantees a rate before the planned purchase of a home, which means that you should secure a mortgage within this timeframe-especially if interest rates are not stable. During this time you should make a thorough assessment of your financial situation (ideally with the help of a mortgage broker).
Why Get Pre-Approved?
In a seller’s market, getting pre-approved will increase your chances of buying the home you want at a price you can realistically afford. Realtors are more likely to get you the right home when they know you have been pre-approved. Also, it gives the seller confidence that you can purchase the home when the time comes. The most important advantage is that you can secure a mortgage at the best rates. Even if interest rates drop, some lenders will guarantee the lower rate. Finally, the lender will give you preference, seeing as they already have some information about you. It is important to note, however, that being pre-approved doesn’t mean that you will secure a mortgage. It just means that if you do secure a mortgage, you will at least be guaranteed the lowest possible rate.
At Northwood Mortgage, we have experienced mortgage agents who can assess your situation and help you get the best mortgage. Because we deal with many institutions, we can negotiate the best rates on your behalf. Give us a call today for a free consultation or visit our website. Our phone number is 416-969-8130. Email us at info@northwoodmortgage.com or browse our website at www.northwoodmortgage.com. If you would like to visit our office, we are located at 7676 Woodbine Avenue, Suite 100, Markham, Ontario, L3R 2N2 Canada
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