Pre-Approved Mortgage in Toronto
Clients all over Toronto depend on the superior mortgage brokerage services of eMortgage Solutions. If you are considering a mortgage pre-approval, you have come to the right place.
We will browse through countless options for lenders, finding you the options that best suit your circumstances. You can count on our impartial advice and expertise for all your mortgage needs.
Contact us today at (416) 258-0156 to schedule a consultation with one of our brokers!
What Is a Pre-Approved Mortgage?
A pre-approved mortgage is a conditional, written statement from a lender. It specifies a monetary mortgage amount based on income, credit history, and other criteria.
The dollar figure indicates how much you can spend on a property, and the mortgage pre-approval specifies a given term and interest rate. Obtaining a pre-approved mortgage allows you to move forward in your search for your dream home.
What’s the Difference Between Pre-Approved and Pre-Qualified Mortgage?
In the mortgage process, pre-qualification is seen as the first step, while pre-approval is the second.
A pre-qualification will reveal a rough estimate of how much you can borrow, based solely on total income. A pre-approval entails the submission of a full mortgage application and a more thorough credit check. You’ll then receive a precise monetary amount, specifying terms and conditions.
Do Mortgage Pre-Approvals Affect Credit Score?
No. Your credit will be checked as part of the pre-approval process through what is called a soft inquiry. This type of credit check can be seen by only the lender and consumer and does not affect the credit score.
A hard inquiry typically runs during a mortgage application, is a more exhaustive credit check, and can affect one’s credit score, but only if they are done repeatedly.
Only once you have been pre-approved and proceed with taking out the mortgage, will the inquiry affect your credit score.
What Should I Do Before Getting Pre-Approved for a Mortgage?
To get pre-approved for a mortgage, you have to prove that you qualify. The following steps can significantly enhance your chances of pre-approval:
- Being ready to provide a down payment (generally 5% is the recommended minimum)
- Maximize your credit score
- Debt-to-income ratio (lenders typically don’t want this percentage to exceed 40%)
- Prepare required documentation (credit report, proof of assets, proof of income and employment, and more)
When Should I Get Pre-Approved for a Mortgage?
The best time to opt for pre-approval is when you are ready, able, and willing to buy a house. The locked-in rate will protect you throughout your property search if there are fluctuations.
Once you have obtained your pre-approval, you can begin searching and shopping with confidence, knowing your maximum amount to borrow, and what you can afford to purchase.
How Long Do Pre-Approved Mortgages Last?
Depending on the lender you have applied with, your mortgage pre-approval will generally last from 60 to 120 days, subject to the terms and conditions.
Get a Pre-Approved Mortgage Today
The easiest way to get pre-approved is to schedule a mortgage consultation with eMortgage Solutions’s specialized broker. We’ll simplify the browsing and application processes, getting you closer to finding your dream home!
Contact us at (416) 258-0156 to schedule your consultation. We would be pleased to answer any of your questions.