A pre-approval for a mortgage is a bit of a misconception. A pre-approval is more of a process than an approval. This is the time when a lender looks at your financial status and determines the maximum amount that they may lend you and what the interest rate would be.
It’s a “preview” to what COULD happen but it isn’t necessarily what WILL happen.
When you are looking at a home and feel that it might be the “one”, be sure to advise your mortgage broker or agent. Getting the information to the lender quickly will help in finalizing the mortgage approval. The lender will review the property (price, value, status, etc.). Once that is done, the lender will finalize the terms and documentation. Note that the terms and documentation may change.
It is extremely important that you do not change anything that affects your financial status negatively once you are pre-approved. A job change, added debt, a missed payment, anything that affects your credit score will definitely affect the pre-approval.
This is a big topic and there are many bits and pieces involved. I’ll continue to share information in future newsletters and blogs to help you move your pre-approval to approval seamlessly.
Let me help you navigate the pre-approval to final details. Contact me when you’re ready.