The importance of a Pre-Approval - the sad truth
Ask Rita Cousins
Recently a client had been referred to me, he had been turned down by his Financial Institution after he had sold his home and was trying to purchase his 'ever after' home.
Why, you ask, wasn't he pre-approved first? A very good question indeed.
This client had numerous meetings with his Financial Institution, he had thought he had done the right things, and that he had been pre-approved, regrettably, he was not.
In actuality, he hadn't been pre-approved, they had only 'discussed' options, sadly I see this happening too often.
What happened to my client? Well, let's just say he wasn't able to purchase his 'ever after' home; however, on a positive note, he did find an adorable condo that suited his needs, albeit he no longer deals with ‘his’ Financial Institution.
What is a Mortgage Pre-Approval?
An official process to see if you qualify for a mortgage - This requires a credit check for the lender to review, along with financial documents, income documents, tax returns etc...You will receive a written conditional commitment from the Bank or Mortgage Broker that says you are pre-approved for the mortgage financing; however is still subject to the approval of the property and re-confirmation again of income and assets and creditworthiness
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