What?! But I thought I was Pre-Approved
Ya, we don't hear that too often, due to the fact that we work with some pretty awesome Calgary Mortgage Brokers.
There is a huge difference between a Pre-Qualification and a Pre-Approval and I think you deserve to know the difference.
I like to use analogies when I write so here is one for you....Would you go onto a car lot to buy a car without any money in your bank account?
Better yet, would go still walk onto that car lot if you knew there was a chance the bank may not lend you the money?
Anyone can get a pre-qualification for a mortgage. It's easy.
Pick up the phone, call your bank, ask to speak to someone about a mortgage and then tell them everything they want to hear.
Them: How much do you make in a year?
Them: How much debt do you have?
You: None, I am debt free.
Them: How much money do you have for a downpayment?
You: Oh I have 10% to put down.
Them: Great, your pre-qualified to purchase up to $450,000!
You: Perfect, I am going shopping!
The Real World Doesn't Work that Way
Sorry but it doesn't.
Everything you tell the bank, at some point, you are going to have to back that up.
You say you make $150k in a year, prove it with pay stubs and 2 years of Notices of Assessment.
No Debt? Perfect, you won't mind filling out this form so that the mortgage broker can pull your credit history then...
Anyway, the point is, don't go shopping when you don't really know how much you can spend.....if anything at all.
Watch the video below for more info!