How to get a Preapproval Letter for a MortgageWhere can I get a letter of pre-approval for a mortgage?
Which is a letter of pre-approval for a mortgage?
What exactly is a letter of pre-approval in the pre-approval procedure for mortgages? Why should I look at the letter? We' re addressing these issues in this feature so you know what to do with the letter of pre-approval for your next home buy. Mujtaba Syed, Manager - Mobile Mortgage Specialist at TD Canada Trust joins me today.
A letter of pre-approval, what does it mean and what does it mean? Mo: What is a letter of pre-approval? mujtaba syed: From a technical point of view, a letter of pre-approval is your letter of agreement. Once you have gone through the pre-approval procedure, [00:00:00:30] you have gone through the recruitment procedure and you have now been pre-approved.
It' s a technical kind of letter that says that it could be a kind of summary of the entire interview you may have had with this creditor, or a break-down of your sums for which you have been pre-approved. There may even be some of this CMHC (Canada Housing Mortgage Corporation) or the assurance of it.
It is something that protects them and protects the property business when there is a failure that they take good care of. So, your mortgage letter, or your yearly mortgage especially, should be able to talk that over with you throughout the entire procedure. It' actually gonna have this collapse.
An Advance Authorization letter also contains the interest distribution, the one you just received, so there is no mess. You may have to meet some conditions[00:01:30] after pre-approval. You may have certain requirements regarding the use, the processes you have been discussing, some things you need to work on.
These could also be on this letter. What's the duration of the letter? mujtaba syed: Today, many realtors, broker, broker,[00:02:00] developers who work for you to help you find the right home might need this letter.
They might also be able to anwer any question they might have to see how willing you are to buy. So, should you receive this letter before perhaps speaking to a seller, a developer or even a realtor? Mujtaba Syed: So, once you speak to this seller, this constructor or a realtor, you already know how much you will get upfront.
Definitely shortens their lead times, definitely accelerates the game. Our aim is for you to be able to get the property immediately so that it will be simpler for everyone to have this letter so that you can present it. Great, do you have anything else to say [00:03:00] in the form of pre-approval letter?
Mujtaba Syed: There are all the requirements, all the concepts that you have talked about with the expert. Ensure that it is the interest that you had arranged with the creditor or expert at that point. Some things that may have been overlooked during the pre-approval procedure may really affect your final authorisation.
Our goal is to make sure that once you have received the letter [00:03:30] you have thoroughly reviewed it and agree with everything it says before proceeding. If you have ancillary mortgage queries or house purchase queries that we can reply to by posting them in the comment box below, please let us know.
Mujtaba Syed: Munjtaba is an expert mortgage broker with a proven track record of working in the financial sector.