Pre-Approvals: Why You Must Get it in Writing

Pre-approvals: Why you must get it in writing

A written pre-approval provides you with proof you have been pre-approved for a mortgage. It provides you with a rate hold for up to 120 days. This means your rate will not go up during this period.

A pre-approval also provides you with a list of conditions and paperwork requirements that you will require once you find your new home and have an accepted offer.

Before you even begin looking at properties you need to know how much you can afford. A written pre-approval will provide you with a piece of mind knowing that once you find your home you can afford to buy it.

A big issue I have with large banks and lending institutions is they will provide a verbal approval but not follow it up with a written pre-approval. This can be a real problem in a market where interest rates are rising.

I have witnessed this with clients in my mortgage business. Clients get a verbal approval from their personal bank and then a month or two later find a home. Only to find the lender will no longer give them the rate quoted at the time. Since they have nothing in writing they lose that rate and now must pay more for the mortgage.

Always get your pre-approval in writing

If your broker or bank will not put it in writing and take the time to have you complete a mortgage application and discuss your need you should run. Find someone who will put it in writing.

Your realtor will want to know if you have done this. You can show them your written pre-approval. This makes you feel better and certainly makes your realtor work harder as they know you are serious about buying a home.

Pre-approvals are easy to do and you are under no obligation

A pre-approval obligates the lender who issues it to you but you can still shop with other lenders in the future. They have provided you a written rate hold and will honor it if you find a new home and take possession before the expiry date on the pre-approval.

It is always fair to allow the lender who pre-approved you the chance to meet any better offer you may find. They believed in you from the beginning, as a broker I say this is the least we can do. Give them a chance to meet or beat the best rate you can get.

How do you get a pre-approval

You can get one through your bank or through a mortgage broker. You only need to complete a mortgage application. If you are self-employed you will be asked to provide your last 2 years tax returns to prove your current two year average income.

I have been doing mortgage pre-approvals for over 15 years and would be pleased to help you if you live, and/or want to buy in Canada. You can contact me at . We can arrange a time to talk or converse by email if you prefer. I would be pleased to meet with you if you are in the Calgary, Alberta Canada area.

If you want to get started immediately you can complete an application at my secured application page at

Click on my picture, Daryl Marsden and you will be sent to my private and secured application page.

Please note due to some browsers, please do NOT use your ENTER key when completing your application. It can prematurely submit the application. Use your TAB key or Mouse to move from question to question. Once you hit submit it will be set to my computer and I can help you immediately.

Posted in Making Your Offer, Paperwork, Pre-approvals, Purchase Plus Improvements, Resources.

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.