Mortgage Pre-Approval - A Stepping Stone to Buy a Home

Mortgage pr-approval precess could help in a purchase of a dream home and could be wonderful tool to win a bidding war. Bidding wars were common in recent months in Toronto.

ON, Canada (prHWY.com) October 17, 2012 - Toronto, ON, October 17, 2012 -- Mortgage pre-approval offer an additional power in the multiple offer scenario when purchasing a house or a condo. Mortgage brokers determine the personal/family income, check the credit history (beacon score) and find out the total downpayment along with closing cost of the property one is interested in purchase as well as offer the best mortgage rates one will be qualifying for. The mortgage agent is able to establish the maximum loan amount one qualifies for! The typical mortgage pre- approval period is about 120 days in Canada which allow the buyer a lot of time to shop around for your dream home. After the 120 days even though the purchase transaction does not take place the pre-approval is still valid however the rate may change and therefore the maximum mortgage amount given person is qualifying for will be different as well! Keep in mind that one is not obligated to work with a lender that offered the the pre-approval in fact the mortgage professionals are looking for a best mortgage with the best rate at the time one is purchasing the property. The pre-approval process is not a guarantee or an approval however it is a starting point when buying a home.

There are few elements the lenders are looking for before releasing a mortgage loan. One of the most important is the credit history- the beacon score. The beacon score is establish based on a previous loan activities such as the credit card usage, the car loans, the furniture loans at the store and any other credit that one has ever taken. It is very important to use these loans and pay on time to build a good credit history. Credit cards are the most commonly used and it is recommended to keep the balance below 80% of the given limit and always pay at least the minimum payment on time! The personal beacon score should be minimum of 600 but preferably 700 + to qualify for a good mortgage rate from a good lender.

Bidding war - what if a person will be involved in one - would the mortgage pre-approval help? Yes! Most home purchase/sale offers come with a mortgage condition. Its wise to have this condition in place if a person has not gone through pre-approval process yet. This is a specially important because one cannot sure about the amount of mortgage he/she qualifies for. Once one is pre-approve he/she can waive the mortgage condition - which in the eyes of the seller this will become more attractive purchasing party which in some cases the lower offer may overpower higher offers with conditions attached.

Here is Mario Lasocha, a mortgage broker who is specializing in the residential mortgages in the Greater Toronto Area covering such Cities and Towns as: Toronto, Etobicoke, Mississauga, Woodbridge, Markham, Vaughan, Caledon, Bolton, Brampton, Okaville, Scarborough. His specialities are mortgages for new emigrants and self employed-Our brokerage mainly focuses on new home purchases, mortgage refinance with debt consolidation, renewals of existing mortgages (transfers), home equity lines of credit.

Contact:
Mariusz Lasocha
Mortgage Rates
12378 Centreville Creek Rd
Caledon, ON L7C 3B6
416-821-6338
mario@mortgage-rates-gta.com
http://www.mortgage-rates-gta.com

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Tag Words: credit history, wonderful tool, mortgage brokers, dream home, stepping stone

Categories: Finance

Press Release Contact
Mortgage Rates
12378 Centreville Creek Rd
Caledon, ON L7C 3B6

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