First Steps, Part 2
In Part one, we looked at a few of the first steps someone should take before setting out on a house hunting expedition. This included:
- Decide if you really want or need to move
- Decide on what type of home you want
- Know what you can afford.
Under point three, I had asked Jill Gravelle, a mobile mortgage specialist with RBC (613-266-0328) to explain what it means to be pre-qualified for a mortgage. Today I asked Jill to go a bit further and explain what it means to be pre-approved for a mortgage.
Jill: A pre-approval is more formalized, if a client is seriously looking for a home, and needs to know exactly how much they can afford, and then we start an application, which also commits the application and a rate for 120 days. If the client has a stable income, good credit bureau, net worth, we can quickly provide a “pre-approval letter” which confirms that if all declared is correct, this would be the amount of mortgage we would advance. Please note, the property has to qualify as well! If the income is more erratic, self-employed, commission etc., then we can get an “agreement in Principle” on the pre-approval, but still subject to property qualification as well. Please note, any application with less than 20 % down payment, the decision of approval rests with the Default Insurer and only can be submitted with a purchase agreement
Anyone who is thinking about buying a home can easily follow the steps in First Steps, Part one as well as this one. It is not all that complicated and it does set you on your way to finding your dream home. Whether you are buying your first home, up-sizing, down-sizing or thinking about condo living, there is a home for everyone.
Whether you are buying or selling, give Keith and Bev Beardsley a call for an honest discussion about your options.
Keith and Bev Beardsley are sales representatives with Century 21 Action Power Team Ltd. They can be found at www.BeardsleyTeam.ca or contacted at 613-821-2384.