When to get your pre-approved mortgage?

[Condocraze]

I'm a little confused as to when you're supposed to get your pre-approval for your mortgage. Is it before you purchase a condo, when you sign the papers, when you move in, or when the building is registered? Can anyone tell me their experiences? Thank you.

 

[Monaco]

You can get pre-approved any time. Depending on the terms, they hold the rate for you for 30-120 days (or more). Usually people get pre-approval when they are thinking about buying a house (so before purchasing), so they know roughly what price range is feasible. Some people might get pre-approved now with the intention of buying this summer since interest rates are reportedly set to rise soon.

Technically you can get pre-approved even if you aren't even thinking of buying a place.

EDIT: after you buy a (resale) place, you get approved/finalize the mortgage - you have to submit info about the property to your lender and they have to okay everything. Pre-approval is for when you are shopping around for a place. The rules are different though for new condos that are not yet registered.

 

[Woodbridge_Heights]

I applied for a pre approved mortgage through ing a few months ago. Basically you apply before you buy the house/condo. Then once you find your place you submit your papers and finalize your mortgage. I'm not sure how it works with pre construction homes though.

 

[Condocraze]

Thanks for the answers. I'm actually wondering when I have to get a pre-approval for a condo that is under construction. Anyone have any idea? Thanks.

 

[simuls]

Normally, the developer will require you have pre-approval before you sign and they accept your offer-to-purchase or within a couple weeks of it. Same, even if construction is a year away from starting. Some will then ask you to update the pre-approval's throughout the construction process (like once a year) as they're usually only good for a certain period of time.

 

[shelfun]

U can get pre-approve before purchase so you know your budget.

However, I did it only after signing the purchase agreement. The agreement also stipulates when you are suppose to show the "mortage approval" paper work to the builder. Check your agreement or have your lawyer point out the section where they talk about mortgage arrangements.

Hope this helps...

 

[Josef]

I always thought that you had to get the approval after the building has been registered.

 

[shelfun]

I always thought that you had to get the approval after the building has been registered.

Depending on the builder / seller. They may require you to show them that you can get a mortgage for the balance of the purchase price.

Let's say you have 200k to put down as downpayment & your income can support a 300k loan, you would get a pre-approval from the bank of your choice so you can "prove" that you can "afford" a 500k home.

Once the building is registered you will have to make sure the loan is in place. You need not stick with the bank that gives you the pre-approval if you can find a better rate by that time.

 

[luxome]

Question:
Do i have to get mortgage through the same person who i got mortgage pre-approval from? Are there fine prints somewhere stating that i MUST use the person who got me the mortgage pre-approval?

 

[MarcFromOttawa]

You need not stick with the bank that gives you the pre-approval if you can find a better rate by that time.

right above your post.

 

[luxome]

right above your post.

haha...oops. thanks!