A PORTABLE MORTGAGE provides flexibility if you should move. You can transfer this mortgage to your new property without paying a mortgage penalty for early repayment. This option will be reviewed with you by your Lawyer and your Lender.
The closest thing to a guaranteed loan comes with pre-approval. After completing a formal application and providing all the necessary documentation related to employment and financial disposition, the file, along with a full credit report, will be thoroughly evaluated and verified by the lender's underwriters.
If they are satisfied, you will be cleared for a loan of a determined amount.
This in no way means you have a firm commitment though. The loan is subject to a fully executed sales contract and an acceptable appraisal.
But being pre-approved can give you a sizeable advantage. Many lenders present borrowers with a letter, which may give you more leverage with a seller.
Does your mortgage contract allow for any prepayment options? The more money you can repay to your lender, the less interest you will pay. Know what your prepayment options are; if you are financially able to take advantage of these options, do so. Remember that on a renewal of your mortgage contract the prepayment options contained in your mortgage contract will not apply unless specifically referred to in your mortgage renewal agreement.
Usually, in just a 15-minute phone call, a lender can pre-qualify you for a mortgage.
Because the lender's underwriters do not validate credit history or employment information for pre-qualification, this preliminary review results in a non-binding opinion regarding how much of a mortgage a borrower can afford. By seeking pre-qualification, you'll come away with an estimated monthly payment and a price range to shop based on the loan size.
This information, however, is intended to be a guide as you begin the home buying process. It does not guarantee that you'll be approved for a mortgage.
Mortgage
