Brandon Luff
Edmonton Real Estate

 

Mortgage Information


Mortgage Pre-Approval Process
What is a mortgage pre-approval?
A mortgage pre-approval is a tentative promise made by a lender, to a buyer, for a loan to fund their purchase of a residential property.  A pre-approval typically includes the mortgage term, amortization, and interest rate at which the funds will be advanced to the buyer. A mortgage pre-approval also helps the buyer and their real estate professional to understand the amount of financing that will be made available to the buyer. This information in turn, indicates the maximum purchase price of a property that the buyer can afford.
Why get a mortgage pre-approval?
The mortgage pre-approval provides protection against changes in interest rates, but it has an expiry date. Typically, the interest rate is held for a period of 60-90 days, but may extend up to 120 days. If mortgage rates rise, the buyer receives the pre-approved rate. If mortgage rates drop, the buyer receives the lower rate. However, the buyer must take possession of the property they have purchased prior to the expiry date of the pre-approval in order to receive that rate. It is important to ensure you receive a written copy of the mortgage pre-approval.

The pre-approval process also provides valuable information to the buyer such as the cost to arrange financing, any high-ratio mortgage insurance fees, if applicable, and the anticipated mortgage payments they will be responsible to pay the lender.
For more information...

If you have any questions related to mortgages, or mortgage pre-approvals, don’t hesitate to contact brandonluff@royallepage.ca right now for answers, or a referral to one of the several mortgage professionals I regularly work with.

 
Brandon Luff
Brandon Luff
REALTOR®
Royal LePage Noralta Real Estate, Brokerage (Independently owned and operated)
3018 CALGARY TRAIL Edmonton, AB T6J6V4
Phone: 780.431.5600     
Fax: 780.431.5624     
Mobile:  780.405.4948     
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