Mortgage Pre Approval in Toronto

Getting mortgage pre approval in Toronto is the first step when buying a home or rental property. The main idea behind a pre approval is that a lender or mortgage broker has reviewed your financial situation thoroughly and has validated the ability to purchase, renew or refinance.

Getting a pre approval in Toronto

A pre approval does not guarantee full mortgage approval. Instead, it strongly indicates that there will not be an issue with the full approval. The main component missing from a pre approval is the property itself, and lenders will not pre approve on a specific property. However, eat Altrua, we regularly ‘vet properties for our clients to help ensure ea smooth transition from pre approval to full lender approval.

Typically, the mortgage professional will review income, credit and how much down payment is likely to be involved in the transaction. The more thorough the review in these areas, the more reliable the pre approval will be.

There are no obligations with the pre approval. There is no document to sign. 

What to look for in a pre approval

As mentioned, a solid pre approval will involve several thorough checks. If it seems like the pre approval is a bit more work, this is likely a good sign. For example, providing full documents up front on a pre aproval will validate the application information. The documents will be needed in the mortgage transaction, why not have them up front?

Typically, the stronger the pre aproval, the smother the overall transaction will be.

How long a pre approval lasts is another area to look for. Typically, a RATE HOLD lasts up to 120 dates. But when the rate hold ends, this doesn’t necessarily mean the pre approval is done. A good pre approval will last indefinitely or until the mortgage professional indicates that there has been a change in the lender policies/ lending market or if there is a change with the application/ personal situation.

Steps in a pre approval

There are several steps in a pre approval. The first step is to get in touch with Altrua Financial. This is done with a quick 10 -20 minute phone cal. Usually, within this conversation, we can determine the ‘big picture’ of what you’re looking for, your goals and preferences for mortgage type. We can also quote some of the best market rates.

After the call, if it sounds good, an online application is submitted.

The next step involves gathering documentation. Although documentation is not 100% necessary at this stage, it is an important step to ensure the application information is logged with what the documents say. We quote payments and different rates and ensure, to the best extent, that there will be no issues when proceeding with an offer to purchase.

Often, a mortgage rate reserve is involved. It’s important to note that a rate reserve is the HIGHEST rate that will be offered within 120 days. As the mortgage rate market often fluctuates, a lower rate is possible before closing.

Happy house hunting! With a proper preapproval under your belt, the transaction should be a pleasant, efficient one.