Everything you need to know about pre-approvals!
There are two general components to any pre-approval
1. Your Pre-Approval – A true pre-approval is essentially an on-going process that involves a traditional application and supporting documents that allows our team to give you that concrete stamp of approval before starting your home search process.
Your pre-approval will include everything you need to know about how large of a mortgage you can qualify for, what options are available to you, strategies to meet your goals, and a deep dive discussion on the overall home buying process from start to finish. This step is complimentary with no obligation to proceed.
2. Your Rate Hold – A rate hold is NOT a true pre-approval as banks do not review you or your income documents prior to having an offer submitted on a property. A rate hold is an interest rate held at today’s best rate and is put in place to protect you should rates rise during your home buying journey.
- How Long Does My Pre-Approval Last For?
- What are the Benefits to a Pre-Approval?
- What is a True Pre-Approval?
- What are The Do’s & Don’ts During the Home Buying Process?
- Will a Pre-Approval Damage My Credit Score?
Most mortgage pre-approvals are good for 120 days from the time of submission. Our team also works closely with unique lenders that will offer a rate hold for up to 6 and even 12 months. Holding today’s best rate will ultimately protect you should rate rise while you search for your new home.
Because your rate hold has an expiry, if you complete on your purchase or refinance after your 120-day window, you will be subject to a new rate. Given you don’t increase any debt or change your job in those 120 days, it’s as simple as updating your documents at time of approval.
- You can lock in a mortgage rate today for up to 120 days to protect you against any increase in interest rates.
- We will discuss your goals and build a plan for you to succeed in your new home.
- A true pre-approval will provide you with stronger negotiating power at time of offer.
- We will calculate your total budget and affordability based on your household income.
- We will accurately determine if you can qualify for the homes you have already been looking at.
- You will understand the home buying process from start to finish.
- You will learn the big picture costs to home ownership before starting the home buying process.
- It’s FREE!
- A true pre-approval with us at Boychuk Mortgage Group is a guaranteed stamp of approval that we have done the proper due diligence to protect your best interest in advance of shopping for your new home.
- Your pre-approval includes a one-on-one success planning session to help educate you and to create a long-term mortgage and wealth strategy!
- In this step, we review your mortgage application, examine documents, check your credit, then source and present the best lender(s) and product for your situation.
- This step is a realistic overview of your financial situation and NOT a quick online app calculation. It’s important to know that these online options are a great tool to get a general understanding but are not an accurate tool that you would want to use solely prior to house shopping.
- Our pre-approvals are a free, no obligation step put in place to help you understand your unique borrowing power before starting the home buying process with your realtor.
- Your pre-approval rate will be held for 120 days (sometimes more), protecting you should rates rise. This comes with a guaranteed best rate at time of submission.
- Understanding your borrowing power at time of offer, not only gives you the upper hand in negotiations, but it provides you the confidence to act.
- Keep saving
- Continue paying down unsecured debt
- Keep your mortgage team up to date with any changes including down payment & income
- Maintain an adequate credit score
- Do not take on any new debt, including purchasing a vehicle
- Do not change jobs
- Do not spend your down payment
- Do not move your down payment around
- With our pre-approvals, we only pull your credit one time to ensure maximum credit.
- Credit reporter will also allow you to have a certain number of hard pulls per individual each calendar year, without hurting your overall credit score.
- Checking your credit will not negatively affect your score unless you already have underlining credit concerns like late or missed payments.
- In this case, your score will still not be impacted, and we can work with you to help establish stronger credit practices for your future.