Pre-qualified or Pre-approved
A potential home purchaser should first do some financial calculations to establish what they can afford. Sometimes the result is a bit disappointing, but in most cases it will provide the confidence to narrow the search criteria. You can visit our Mortgage Calculations section for more help. When a decision has been made as to the area, type of home and the price range then it is the time to get a pre-approved mortgage commitment in writing. With a firm pre-approval you can then speak with the real estate agent that you feel comfortable with. The agent will then work enthusiastically on your behalf in the knowledge that you are a serious purchaser, financially capable to complete a purchase.
Protect Against Interest Rate Increases
Some lenders only provide a written 'Pre-qualified' document, which includes a lot of 'subject to statements', some will try to give verbal assurances. In order to protect against interest rate increases prior to the purchase, the lender should do a credit check and be able to provide an unconditional guarantee in writing, which is valid for a minimum of 90 days. The pre-approval provides a certain comfort level and removes some of the stress in the purchasing process. You can click on the 'Mortgage Application button' to complete the application in confidence and this mortgage broker will provide a commitment at the best current rate and terms to meet your needs.
