What is the difference between a pre-approval and an approval?

At the pre-approval stage, you will be asked to provide the same information that would be required if you had already made an offer on a property and the customization of your mortgage has already begun; However, a full approval is not issued until there is a property tied to the application.

This is the stage where you will find out if, as an applicant, there are lenders who would be willing to give you a mortgage as well as the maximum mortgage amount you would potentially be approved for. This step in the process does not mean there is not a risk when putting in an offer and going in firm, it is specifically where you will find out what requirements need to be met, in order to be approved for a mortgage; Provided the property you are looking to purchase is also approved by the lender.

While being pre-approved doesn't guarantee you a mortgage approval when making an offer on a property, it is extremely important to find out what your options are for financing prior to making an offer.

Contact Kristen Gignac, Experienced Mortgage Broker for all your commercial and residential mortgage needs across Etobicoke, Toronto, Pickering and surrounding areas.

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