Posted On Jul 18, 2023

PRE-APPROVAL

An assessment of your financial situation, indicating the maximum loan amount you qualify for. It helps determine your budget and secures an interest rate hold for up to 120 days. A pre-approval is the first step in the home-buying journey. BUT, it’s not a formal mortgage approval. Changes to the pre-approval could void the rate hold and approval.

 

APPROVAL

The lender's formal commitment outlining terms and conditions of the loan, confirming they’re willing to provide financing IF the borrower can meet all financing conditions. It’s the final step in the mortgage journey, providing the borrower with the assurance of securing a loan for their home.

 

*Final approval is subject to meeting lenders eligibility at the time of the purchase with satisfactory:

- Subject property and Purchase Agreement

- Confirmation of income, credit, and debts

- Confirmation of down payment & closing costs 

Additional terms and conditions are outlined in the mortgage commitment by the lender