Thursday, April 22, 2010
What Is A Preapproval In Canada Mortgages?
A pre-approval is not a guarantee that you will get a mortgage from the Lender. It is merely a rate hold from most lenders. What a preapproval should do is have a full credit application done, credit bureau pulled and income, down payment confirmation provided. This way a independent accredited mortgage professional can review the paper work with a lender and give a green light. This is a green light to purchase a home with a subject to financing clause. During this time is when you can get an approval in writing from a lender and confirmation that your paper work is acceptable. Do not go into any offer in today's mortgage world in Canada without a subject to financing to protect yourself. There have been too many changes by the lenders and the insurers.