Mortgage pre-approval in Canada explained
Are you planning to purchase a new property in Canada? Then you might be wondering “ how to get pre approved for a mortgage to finance your new home?”. Well, while you can obtain a pre-approval rather easily, you would have to make sure that you are doing it right. Obtaining a pre-approval can make it much easier for you to secure the loan. What is a mortgage pre-approval? A mortgage pre-approval is proof that a loan officer has gone through your credit history, debt, income, and assets. While approving the mortgage, the loan officer would determine the amount of money that you may borrow, what the interest rate for the mortgage should be and how much you can pay in a month. Which is better : preapproval or prequalification? Individuals often confuse mortgage preapproval and prequalification as the same and use the terms interchangeably. In reality, however, the two are quite different. Here is how the two differ: • Mortgage prequalification The key purpose of a mortgage prequalif