Frequently Asked Questions About Mortgages
Homeownership is a dream that many hold dear and one way of actualizing this dream is by successfully obtaining a mortgage. However, the process of doing so isn’t always transparent, which leads to clients having a ton of questions but more often than not, finding answers difficult to come by.
As an experienced mortgage advisor, I want to arm you with the most accurate information available so that you can make informed decisions. To help you on your home buying journey, I’ve answered some of the most frequently asked questions about mortgages.
1. How long is a pre-approval valid for?
A pre-approval is valid for 120 days.
2. Once pre-approval has been received, does the lender still carry out a credit check?
Yes, a credit check is done until the official application is submitted.
3. Why can’t I get approved with ‘A’ lenders?
You will not qualify for a mortgage from an ‘A’ lender if your debts ratios are high and credit score is below the scores mandated to borrow from an ‘A’ lender.
4. Why do I need to go to a private lender?
If your debts are high, credit score is low, and you do not have enough of money for a down payment, you may be left with no option but to go to a private lender.
5. What is a bridge loan?
A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation. It is called a bridge loan because it serves as a bridge between one period of funding and another more permanent source of funding.
6. What is the rate I can qualify for?
The rate and loan value is only determined once the agent has reviewed potential clients scores, debts, income, etc. It is best to consult a mortgage broker to learn how what rate you qualify for.
7. Why is my house valued lower than what I thought it was?
Once a lender approves a mortgage, there is an appraisal process that is followed. Whatever price is provided by the appraiser, that is the value of the house that the lender will consider.
If you have any more questions about mortgages, get in touch with the expert - Anita Mann. As an experienced mortgage advisor in Mississauga, Brampton, Oakville, Burlington, Hamilton, Stoney Creek, St- Catherine and Niagara, ON, I can help you achieve their dreams by creating the best mortgage strategy for you. To learn more about how I can help you, please click here or get in touch with me by clicking here.
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For all your mortgare requirements, book a consultation with Anita Mann today.