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Pre-Qual vs Pre-Approval: Know Before You Buy

Confused by Pre-Qualification & Pre-Approval for Mortgages? Learn the key differences & how they impact your Burlington or Hamilton home purchase!<br>

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Pre-Qual vs Pre-Approval: Know Before You Buy

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  1. Pre-Qual vs Pre-Approval: Know Before You Buy www.loewengroup.ca

  2. Understanding Pre-Approval vs. Pre-Qualification for a Mortgage • Congratulations! You have taken the first step towards owning a house. If you are purchasing a house for the first time in Burlington or considering a second residence in Hamilton, you need to know the available mortgage options for you. • Are you confused by Pre-Approval and Pre-Qualification procedures for a Mortgage? Though they sound similar, they are different, and so are their implications • Seeking the services of a mortgage professional helps First time homebuyers through the entire purchase process. They will help them through the intricacies of the mortgage process and solve their doubts while ensuring a seamless purchase process. • Let us learn the differences while you finalize your preferred house.

  3. Mortgage Pre-Qualification: A Starting Point • Mortgage Pre-Qualification assesses your initial borrowing capacity and provides a rough estimate of the mortgage amount you are eligible for, depending on your basic financial status. It is a quick and easy process. Most lenders or Mortgage Brokers in Burlington conduct it online or over the phone. • What to expect during an online or telephonic pre-qualification round • You will be required to share details of your income, work status, and loans • You will be required to share assets and your approximate monthly expenses. • The mortgage provider may perform a soft credit check

  4. Mortgage Pre-Approval: Taking it a Step Further • A pre-approval procedure takes the mortgage process ahead. It offers an in-depth assessment of your borrowing capacity. The pre-approval procedure provides a lender’s conditional commitment for a specific loan amount. This is a step ahead of the mortgage qualification process. • Mortgage Pre-Approval: Taking it a Step Further The lenders may conduct a hard credit check, affecting your credit score. They will analyze your financial condition to determine the mortgage amount and eligibility. On approval, you will receive a pre-approval letter mentioning the loan amount, interest rate, and loan terms you are eligible for. • Submission of documents certifying your assets, income, employment, and liabilities, such as pay stubs, tax returns, bank statements, and investment certificates

  5. Purchasing Capacity and Budget • Let us understand why both pre-qualification and pre-approval are essential. • Once you know your estimated borrowing capacity, you can look around for houses within that price range or budget. • You can always seek the services of a Mortgage Broker in Hamilton to help you during the pre-qualification rounds. They are always ready to guide you through the process, help you contact various lenders, and help you understand the mortgage options available. • Now, let us understand the importance of pre-approval process • Provides support to your purchasing decision • Having a pre-qualified letter demonstrates your seriousness in purchasing a house. It shows your strong intent to buy a house. • Comparison of Lenders • You can compare lending rates and terms received from various lenders to get a clear picture of your borrowing capacity and the best possible mortgage deal.

  6. Importance of Pre-Approval Process for Mortgage • The benefits of Pre-approval during the home-purchasing journey are • 01 • 02 • 03 • Better Negotiating Power • Seamless Closure of the Purchase Deal • Confidence • A pre-approval letter relates to your purchasing capacity to purchase the house. You can show your firm determination or intent to buy the property competitively. • As you are aware of your borrowing capacity and limits, you can confidently embark upon house hunting and locate a house of your liking that fits your budget, too. • With the financial details and papers related to buying a home, you can close the deal much faster and smoother.

  7. Choosing Between Pre-Qualification and Pre-Approval processes • For a sound mortgage process, it is necessary to go for both pre-qualification and pre-approval procedures. It would be best if you remembered they are distinctly apart but valuable in their way • Pre-Qualification: This process is a must if you wish to get a general idea of what type of house you can buy considering your financial status. Moreover, it is quick and easy. Also, it does not impact your credit score. • Pre-Approval: This process is a must when you are very keen or serious about purchasing a home and need to make offers to property sellers. A pre-approval letter strengthens your offer and clarifies your purchasing power. • If you are considering going ahead with private and second mortgages for your purchasing your second property, then you need to understand the relevant terms and conditions before going ahead.

  8. THANK TOU Loewen Group Mortgages (289) 337-4029 tori@loewengroup.ca https://www.loewengroup.ca/ 321 Nautical Blvd, Oakville, ON L6L 0C1, Canada.

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