Mortgage Pre Approval

Discount Mortgage Canada Inc.

To get an idea of what you can afford, your lowest interest rate and your monthly payments would be please start the No Obligation Application Below.

With that information our team of Mortgage Professionals can advise you of what you qualify for, Your Maximum Mortgage Amount, The Best Rate and The Best Terms.

If you need a short term Cash Advance or PayDay Loan please apply here for Approval in 30 Minutes or Less!

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It’s time to look into buying a home. Maybe you’ve finally got the job security that you wanted, or maybe it’s time to start a family and you need more room, or, it could just be you are sick of renting and paying someone else’s mortgage.

BUT, you just don’t know what you can afford and how much your payments would be. Sure, you think you make good money, and you have some debt, but, you pay your bills on time, but what can you afford? This is absolute best time to consult a mortgage professional and find out what fits best for you by discussing a mortgage pre approval.

A mortgage “Pre Approval” in the purest sense of its purpose is to show a potential homebuyer what they can afford based on their income versus their debts and other monthly obligations. For most large banks and lending institutions, this is where the process ends.

They will take a potential borrowers personal information, employment and income information, investment and cash resources for potential down payments, and then tally it all together.

Based on these numbers, the bank will then figure out what payment a potential homebuyer can afford to make based on their TDSR and GDSR (Total and Gross Debt Service Ratio’s) guidelines, and based on that payment amount, determine the amount of mortgage a person can afford. Then, the bank representative will issue a “Pre Approval” Certificate, and send the happy home buyer on their way to buy a house.

Sounds great? Sounds Easy? It is, but, here are the biggest problems with this particular scenario that could prevent this person from achieving their goal of home ownership.

CREDIT

The single most important factor that will dictate whether or not someone will actually qualify for a mortgage was never taken into consideration, and that is the credit history or credit worthiness. They have been “Approved” for a mortgage AMOUNT only, and if they were to read the fine print on the “Pre Approval Certificate” it would tell them “Subject to Credit Approval”.

This is not a minor detail, and needs to be reviewed. A mortgage broker will always request a credit bureau file and review it in detail. When it comes to a bank, even after being pre-approved, the bank could later pull a credit file, and if the client does not fit the bank's head office “risk profile”, they could still decline the mortgage.

On the other hand, a mortgage broker has access to many alternative lenders that may be willing to approve a wider range of mortgage applications. And an experienced mortgage professional can always advise you on how to repair your credit and increase your credit score.

INTEREST RATE

When the bank issues a pre approval, it is done so using the banks “posted rates”. That instantly diminishes the buying power of a potential borrower. A bank will usually charge a 1st time homebuyer the “posted rate” and advise them it is based on their “risk”, as they are sure the client is just excited to be approved.

A mortgage broker will always provide the lowest discounted rate available to everyone they can, therefore increasing the buying power, and/or, reducing the payment enough to get their ratios in line for any house.

ADVICE

There are many situations where a bank just does not have the programs or resources to help clients who does not fit the basic “box“ risk profile. A mortgage broker on the other hand can work with you on a game plan to help obtain home ownership in a shorter timeframe.

With access to more lenders, and access to “self insured” lenders for high ratio mortgages, (banks have limited access to insurers like CMHC and Genworth), private lenders, or the ability to structure a deal through a 1st and a 2nd mortgage, brokers have more tools at their disposal to assist you.

Banks have been around a long time, and they do serve a need for many people, but who are they serving first?

When it comes to mortgage financing, and the ability to provide a potential homebuyer with choice and options to help fulfill their needs, a mortgage broker is better equipped to handle those needs, and help you save time and money in the process

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