Читать книгу Complete Home Buyer's Guide For Canada - Geraldine Santiago - Страница 18

A pre-approved mortgage is very common. It means that your lender approves the amount of your mortgage and gives you a written confirmation or certificate for a fixed time period before you start looking for your home. The pre-approval term, usually lasting from 60 to 120 days, sets the mortgage rate the lender will offer you. If rates go down in that period, the lender should offer you the newer, lower rate. Pre-approval gives you a head start on house hunting, but your final approval is still subject to a review of the property and a credit review of your finances.

A mortgage approval should take only a few days if you have the proper documents ready (see the next section for proper documents needed). During this process, the lender will do a credit check and spot check other information you have provided. In addition, the lender may ask you to obtain an appraisal of the value of the home you intend to purchase. It may also ask you to obtain mortgage loan insurance from the Canada Mortgage and Housing Corporation (CMHC) or a private insurer.

Many lending institutions will pre-qualify you for a specific size and type of mortgage loan before you begin searching for your new home. Taking the time to apply for a pre-approved mortgage will give you the security of knowing how much you can afford to spend. You will be able to shop confidently for a home in your price range and avoid any last-minute complications.

When you place an offer on a property, if you need a mortgage to purchase the property, you will need to be approved by the lender. Although you have been approved for the price, you must also be approved for the property. Your financial institution needs to know that you are paying fair market value for the property in order for it to lend you the money. If it thinks that you are paying over market value for the property, the institution might not approve your mortgage. The lender will usually ask for an appraisal of the property, and will choose its own appraiser to do the job.