Pre Approval

In a market that's as tight as Burlington with so few quality listings, buyers must take the time and steps to be properly pre approved for a mortgage. Why take a chance of losing the house you have searched so long for when the financing falls through.
A proper pre approval requires a bit of effort on the part of the applicant and the Lender/Broker.

Here is what my 25 plus years and thousands of completed mortgage transaction says.

I meet with every client in person and before the meeting, I ask the clients to organize some paperwork. My clients bring recent pay stubs and Notice of Assessments to give us an idea of the incomes we can use in the qualifying calculations. We also ask for proof of down payment  to get a good idea of how much you have and where it is coming from. Arriving with just a smile and your car keys doesn't give us enough valid information to feel comfortable.
We need to complete a mortgage application and go over all the details such as time on the job, and assets and liabilities. The client needs to be transparent and candid so we don't get tripped up later by surprises.
I do some calculations after determining the suitability and sustainability of the income. The maximum mortgage is calculated and the available down payment is added to come up with a rough idea of a purchase price range.
When I say suitable income I mean what the Lender would accept.  For example; income from a client who is 3 months on the job in a new field and on probation would not be acceptable at this time. Another example is someone on salary and commission. If I have a 2 year track record from the Notice of Assessments, I feel comfortable using the average of 2 years. Its all about finding these things out in advance and that's why I prefer the in person interview.
I discuss the amounts with the clients to confirm that we are in the right ball park and we will meet their expectation's.
Next, I complete the credit bureau. I look at the beacon score to see if the clients score is high enough for the type of mortgage they want. I also confirm that the debts listed in the bureau match the clients liabilities from the application.
Once all this has been done and I feel I have a true representation of the clients financial picture I can send the deal off to a preferred lender to get a pre approval. So here is where some Mortgage Brokers or bankers differ.  I want a pre approval certificate from a Lender so that they confirm my findings and commit to give a mortgage to my client pending their purchase of a acceptable property.
By doing this, my client gets a rate saved for 120 days and the comfort knowing that all of the heavy lifting is done and they simply need to find the house and send over the offer and listing to the lender.

Another way we make the experience Stress Free for our clients at the Burlington Mortgage Centre