Those looking to purchase a home have a difficult time understanding what the difference is between getting pre-qualified and pre-approved for a Brampton mortgage. If this is you, then our team at Lotus Loans & Mortgages is here to help provide some clarity by explaining the key differences between these two processes.

 

What Is a Pre-Qualification?

Getting pre-qualified and pre-approved is not mandatory in becoming a homeowner, however, it does provide a lot of benefits. A pre-qualification is simply step one in the home purchasing process and can even occur online. Your Brampton mortgage broker will briefly review your financial history and tell you what type of mortgages you could qualify for as well as how much you could be able to borrow.

Knowing the amount you are able to borrow can save you time when viewing different residential properties because you will know which homes to avoid that are not within your budgeting limits.

 

What Is a Pre-Approval?

Taking part in the pre-approval process is far more beneficial than getting pre-qualified. With a pre-approval, you will immediately gain more credibility with seller’s and real estate agents because it shows them that your finances have been extensively reviewed and that you are in good financial standing to own a home. Also, most real estate agents refuse to work with buyers who have not been pre-approved because they do not want to waste their time working with those who are not truly serious about becoming a homeowner. By working with a real estate agent, you may have more access to different real estate listings and you could receive a better deal on the home of your dreams.

You may also be able to close on a home quicker if you get pre-approved because all the pertinent financial documentation will have already been collected and organised.

 

Contact Us

For more information on the difference between getting pre-qualified and pre-approved or if you would like to get started on your application for a Brampton home loan, please contact the Lotus Loans & Mortgages team at 905-791-1100.