Defining Mortgage Pre-Approval
Also known as a “rate-hold”, a mortgage pre-approval is the process of a mortgage broker looking at your finances and determining the maximum amount that a lender may lend to you and at which rates. Once determined, the mortgage broker will advise you of the amount, rates, and possible conditions, and you can begin to contact a real estate salesperson (REALTOR®) with confidence. You can advise them that you have obtained a mortgage pre-approval and the details of this pre-approval, something they will likely ask for prior to beginning to assist you in shopping for your next home. While a mortgage pre-approval is useful and sometimes vital, it is not a guarantee of a mortgage being issued and has no obligation attached.
The first step toward owning your next home
As you search for a home, there’s an important step to first take to ensure that your purchasing process runs smoothly – a mortgage pre-approval. This pre-approval will help you figure out the price of a home that you can approximately afford and allows you to hold current rates. Sometimes called a “rate-hold”, a pre-approval gives you confidence and peace of mind to shop for your next home.
While this is not an absolute confirmation that the lender will issue you funds (as no bank or mortgage broker can offer) until your final approval, it does mean that in reviewing your application we have determined that you should (O.A.C.) qualify for the outlined maximum mortgage and interest rate (held for 90-120 days in most cases) while you shop, offering you protection from rising rates as you shop.
A mortgage pre-approval, completed through Shane and his experienced team, is a vital step in beginning the search for your next home. While not a requirement prior to making an application for immediate funding (in the event you have already picked out your home or determined your budget, etc.), it does allow those who are interested in purchasing a property to fully understand their current financial situation and allows them to easily shop with a real estate salesperson (REALTOR®) knowing their precise purchasing budget and with a current great low-interest rate locked-in as they shop.
While there are many benefits to a pre-approval, the accompanying locked-in interest rate can make a significant difference in your purchasing budget and sometimes mean the difference between being able to make an offer on your dream home or not, as it will affect your overall funding ratios (GDS & TDS). In addition to this, Shane will guide you through the overall purchasing process from a mortgage perspective and give you advice and tips in making your shopping experience the most enjoyable and valuable to you, including finding a quality real estate salesperson (REALTOR®) to assist you.
Mortgage pre-approvals are offered FREE from Shane and his team (O.A.C.).
Mortgage pre-approval can be obtained prior to contacting a real estate salesperson (REALTOR®). In fact, it usually makes your purchase process go smoother and quicker as you will have an idea of your shopping parameters.
Many real estate salespersons (REALTORS®) will ask if you have obtained a mortgage pre-approval before offering their purchasing assistance to you.
A mortgage pre-approval does not require any commitment or obligation to use the lending terms outlined in the pre-approval, including amount or rate.
A mortgage pre-approval will outline the total mortgage amount you are eligible to receive (pending final approve) and allow you hold current rates, which can result in savings if rates increase while you shop for your property.
You can get started on a pre-approval by submitting an application now. Shane and his team understand the real estate market, including how quickly it changes, and will make every effort to quickly complete your pre-approval.
As specialists in home purchases, including first-time home buyers, you have chosen a trusted and experienced team to work with for your mortgage.
Are you looking for a pre-approval?
Whether you’re curious as to what you could afford or already ready to hit the streets looking for your next dream home, contact Shane now for a mortgage pre-approval that will give you the confidence to shop for a home that fits within your budget.
Shane can complete your pre-approval entirely online or over the phone, as well as in person. Shane offers a variety of options to connect with you and works around your schedule, allowing you to indicate the best time and method for him to contact you.
Benefits of a Mortgage Pre-Approval
Lock-in a rate now to save yourself from future increases
Once you’ve obtained a mortgage pre-approval from Shane and his team, they will work hard with the lender of your choice to “lock-in” a current low mortgage rate which you can keep for 90-120 days. If rates drop, Shane will then drop the held rate in favour of the lower rate.
There are few greater excitements in life than purchasing a home; whether it’s for the first time, an additional investment property, or your dream home for retirement. I would love to share in that excitement with you and offer you the expertise and experience my team and I possess to ensure a smooth purchasing experience that brings great benefits and rates that ultimately translate into savings each and every month.
― Shane Osmond, Mortgage Agent
Mortgage Pre-Approval Process
While Shane approaches each client’s situation and circumstance in the best-tailored manner to benefit them and their unique financial situation and goals, we’ve outlined the general path undertaken by our clients obtaining a mortgage pre-approval and are looking to make sure they receive the absolute best benefits and savings available to them. While this process may not represent your circumstance precisely, it is meant to be a general guide to understand the mortgage pre-approval process.
Interested in Purchasing Property
Contact Shane Osmond
Application & Financials Reviewed
Options Reviewed & Presented
Mortgage Pre-Approval Completed
Frequently Asked Questions (FAQs)
A pre-approval is always free from Shane and his team. We work for you and don’t believe in hidden fees, false and misleading messages such as gimmicky advertising, or charging extravagant fees for the highest standard of excellence in customer service that we offer. We are dedicated to open and honest advice and recommendations.
The first step in obtaining a mortgage pre-approval is submitting an application (follow the “Apply” button anywhere on OsmondMortgages.com). Afterward, you’ll be contacted to gather some additional information and briefly discuss your situation as we always strive to provide personally tailored mortgage solutions. Following this, you may be required to submit a few extra documents, however, a mortgage pre-approval is generally is a quick and easy way to understand your mortgage financing options.
While you may have heard the claim “instant pre-approval”, a truly comprehensive and reliable mortgage pre-approval does take a considerable amount of work from Shane and his team. While you need only to submit the application and answer a few additional questions regarding your unique financial situation, Shane and his team work hard behind the scenes to provide you with a pre-approval as quickly as possible and often much faster than any bank or another mortgage professional. With our level of expertise and experience, we are often able to process a pre-approval in hours once we have gathered all the information and documentation that we may require and within normal operating business hours of the lenders that we work with.
No, you are under no obligation to use the terms and conditions outlined within your pre-approval. You may use it as a reference for future shopping by determining how you will budget yourself in the near future to make a property purchase or use it to begin shopping for your next property within hours or days. Either way, there is no obligation involved with the pre-approval and while there are countless benefits, including holding a great rate for 90-120 days, you can always disregard the pre-approval.
As part of the pre-approval process, you will be given a total mortgage approval amount and a great low rate that will be held. This rate can be held for 90-120 days, depending on the lender. In extreme circumstances, this rate may be held for longer. This is a benefit as clients will usually want to contact a real estate salesperson (REALTOR®) after they have received their pre-approval and begin shopping. As you shop, interest rates may increase but as you have a pre-approval from Shane, you can still use your pre-approval rate and will be safe from the increased payment cost that an increased rate could bring, as well as the decreased total eligible mortgage amount that could also be a result as mortgage rates can affect the overall amount you are eligible to borrow.
Absolutely not as you will always get the best rate for which you qualify. Shane and his team always work to get you the best mortgage financing within your budget and at a great rate. If your pre-approval states a higher rate than that which is available to you when you are ready to make your home purchase, we will utilize the lower rate and provide you with the greatest savings possible – something that we always strive to deliver to our clients. The same applies to any possible mortgage terms or conditions that may be more favourable at the time of purchase.
While some clients choose to contact their real estate salesperson (REALTOR®) first when they are looking to purchase a property, we suggest first obtaining your mortgage pre-approval and then contacting a licensed and qualified real estate salesperson (REALTOR®) as most will ask you to obtain a pre-approval prior to beginning the search for your property. In obtaining it first, you are saving yourself time, energy, and resources, and it will generally make for a smoother purchasing experience.