CTV Morning Live: Mortgage Minute January 30, 2018
Host Henry Burris is joined by Frank Napolitano to discuss the importance of getting pre-approved when shopping for a new home and what different types of pre-approvals mean for customers.
Host Henry Burris is joined by Frank Napolitano to discuss the importance of getting pre-approved when shopping for a new home and what different types of pre-approvals mean for customers.
Frank explains that there is a difference in the type of pre-approval you can obtain from either your bank or Mortgage Broker. In almost all cases, if no documentation such as pay stubs and letter of employment are requested, you most likely do not have a firm pre-approval but rather a rate hold. A rate hold, will secure a rate for you for up to 120 days but if you don't qualify for that mortgage the rate hold will be of no value.
A mortgage approval is a two part process with the buyers getting approved but also the property and home getting approved as well. By submitting your information and documentation up front this allows for less stress when going through the financing period of a home offer with the emphasis moved to then approving the house and property.
Working with a Mortgage Broker and having a pre-approval in place before you start looking for a home will also save your real estate agent time when looking for homes within your budget.