When you\u2019re shopping for a mortgage, you can compare options offered by different lenders.<\/p>\n
Mortgage lenders have a process which may allow you to:<\/p>\n
The mortgage preapproval process may be divided into various steps. It may also be called mortgage prequalification or mortgage preauthorization. Different lenders have different definitions and criteria for each step they offer.<\/p>\n
During this process, the lender looks at your finances to find out the maximum amount they may lend you and at what interest rate. They ask for your personal information, and various documents and they likely run a credit check.<\/p>\n
This process does not guarantee your approval for a mortgage.<\/p>\n
Mortgage lenders lend money directly to you.<\/p>\n
Mortgages are available from several types of lenders, such as:<\/p>\n
Different lenders may have different interest rates and conditions for similar products. Talk to several lenders to make sure you\u2019re getting the best mortgage product for your needs.<\/p>\n
It\u2019s important to be comfortable with the lender and the mortgage options they offer you, right from the start. If you switch lenders after signing your mortgage contract, you may have to pay a prepayment penalty. Make sure you understand the terms and conditions of your mortgage contract.<\/p>\n
Mortgage brokers don\u2019t lend money directly to you. They arrange transactions by finding a lender for you.<\/p>\n
Some lenders only offer their products directly to borrowers, while some mortgage products are only available through brokers. Since brokers have access to many lenders, they may offer a wider range of mortgage products to choose from.<\/p>\n
Mortgage brokers don\u2019t all have access to the same lenders. This means the mortgages available vary from broker to broker. When you\u2019re dealing with a mortgage broker, ask which lenders they work with.<\/p>\n
Mortgage brokers generally don\u2019t charge fees for their services. Instead, they usually receive a commission from the lender when they arrange a transaction.<\/p>\n
The provinces and territories regulate mortgage brokers. You can contact them to confirm that a broker is licensed or to make a complaint.<\/p>\n
Before preapproving you, a lender or mortgage broker will look at:<\/p>\n
You\u2019ll need to provide the following:<\/p>\n
For proof of employment, you may have to provide:<\/p>\n
Your lender or mortgage broker may ask you to provide recent financial statements from bank accounts or investments. This will help them determine if you have the down payment.<\/p>\n
Your debts or financial obligations may include your monthly payments for:<\/p>\n
The preapproval amount is the maximum you may get for a mortgage. It doesn\u2019t guarantee that you\u2019ll get a mortgage for that amount.<\/p>\n
The approved mortgage amount will depend on the value of the property and the amount of your down payment. You can also look at properties in a lower price range so that you don\u2019t stretch your budget to its limit.<\/p>\n
Remember that you also need money for:<\/p>\n
A lender could refuse you a mortgage even if you\u2019ve been preapproved.<\/p>\n
Before a lender approves your loan, they\u2019ll verify that the property you want meets certain standards. These standards will vary from lender to lender.<\/p>\n
Each lender sets its own lending guidelines and policies. A lender may refuse to grant you a mortgage if you have a poor credit history. There may be other reasons. If you don\u2019t get a mortgage, ask your lender about other options available to you.<\/p>\n
Other options may include:<\/p>\n
When getting preapproved, ask your broker or lender the following:<\/p>\n
Ask your lender or broker about anything you don\u2019t understand.<\/p>\n
<\/p>\n
Courtesy: Government of Canada<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" What is a mortgage preapproval? When you\u2019re shopping for a mortgage, you can compare options offered by different lenders. Mortgage lenders have a process which may …<\/p>\n","protected":false},"author":2,"featured_media":56,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,7,4,6,3,5,2,9,8],"tags":[],"class_list":["post-59","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all","category-architecture","category-buildings","category-finance","category-home-decor","category-lifestyle","category-news-updates","category-popular-posts","category-recent-posts"],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\t\n\t\n\t\n