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Mortgage Payments Mortgage Broker
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Cascade Mortgage Capital

We are a full service mortgage brokerage based in Toronto. We offer services for both residential and commercial mortgages, as well as private lending services. For all your mortgage needs please contact us.

Tips for mortgage pre-approval to approval

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Even if you have been pre-approved by your bank or mortgage broker, your application could get denied and you might miss out on the opportunity to secure mortgage financing.

We help you navigate the financial rocky road to get you the best chance of a mortgage approval. Here are four reasons some people might be denied loans:

Lack of documentation

Mortgage lenders request different kinds of documents when approving applicants. By preparing your documents in advance, you’re able to avoid any document related problems when the time comes to apply for your mortgage. So as your mortgage broker, We always try to predict what documents will be requested by lenders and work with you to gather them before you find your dream home.

Closing costs – Do you have enough in reserve?

Most mortgage lenders require you to have sufficient funds available, to cover all the expenses involved in the closing process. Some of these expenses are legal fees, land transfer tax, development charges and more.

Borrowers getting pre-approved for a mortgage may be denied the opportunity to go through with it if they can’t provide proof that they have the necessary funds.

For the most part, the rule is that buyers should have a minimum of 1% of their purchase price to be set aside for closing costs readily available. This is in addition to the purchase down payment.

Impact of additional debt after pre-approval

Mortgage pre-approvals are not the same as mortgage approvals. Being pre-approved or even approved for a mortgage does not mean that you can go ahead and make large purchases without rocking the boat with the lending ratios which may cause concern with the final mortgage lender approval.

With the debt-to-income ratio, the chances of getting a mortgage loan is in your hands. It can be defined as a comparison between your earnings in relation to your expenses to cover regular monthly debts. If you have too many debts – it might be harder to get approved.

Before you buy anything, consult with us just to be safe, but it’s best to try not to open any new credit lines or purchase anything major. Once you know everything is finalized then feel free to do so.

Your situation changed after pre-approval

As a mortgage brokerage, we will use your current income and employment to qualify you for a pre-approval, However, if your material financial status changes during the course of this process, it may cause you to be denied by the mortgage lender.

Given the circumstances, many lenders are being extra diligent about confirming your current employment before giving you a mortgage, this includes calling your employer for an employment reference check.

Key takeaways

  • Obtaining a pre-approval can be a helpful time saver in the mortgage process. It enables you to narrow your property search quickly and takes some of the decision making out of home buying too. It doesn’t, however, ensure that you will ultimately qualify for a mortgage.
  • A pre-approval is not the same thing as an actual mortgage commitment. Most lenders won’t even get to your application until you’ve found a house and you’ve put in an offer. The pre-approval helps determine the maximum purchase price you can afford according to high-level mortgage underwriting guidelines, but your income, supporting documents and the property itself must all be reviewed by the lender and then grant the final approval. As your mortgage brokerage, we will be on the lookout for the best lender and the best terms for you to close on a mortgage.

Conclusion

We are here to help you get the right mortgage for you and to guide you through the process. We understand that finance can be confusing and scary at first, but we will do our best to make sure any questions or worries are answered to your satisfaction.

It may seem like we are asking a lot of questions and requesting many documents, but this is so we can ensure you’ll be in the best position possible when looking for your new home.

A mortgage pre-approval is the first step in searching for your dream home. We can help you obtain your dream home and avoid any financial complications before you sign the purchase contract.

If you’re interested in buying a home, visit our website to get started or give us a call at 647-812-7099.

 

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