Here are 3 easy steps to help you gain clarity and why a subject period with ample time is essential for your new home purchase:

1. Pre –Approval– This is where a credit application, a few income confirmation documents and a discussion about down payment will be required.   This will allow us to see what options you have and to learn about what can be done to position you with the best budget and affordability.  The rate that will be held, provided you get a pre-approval through an AMP, will be one that will be reviewed prior to closing to ensure it is still the best rate offered.   Lenders will often have quick close specials or other offers in place that can only be obtained when you have an accepted purchase offer.  Lenders and Insurers do not verify these special offers in the pre-approval process.
2. Submission for Conditional Approval–  Once you get an offer accepted, you may be required to provide updated documentation for your income, down payment and credit.   The property you are purchasing will also need to be approved.  This is when the lenders begin their due diligence on all of the items.   They also have the right to request any additional documentation that they deem necessary, depending on the buyer’s qualifications and property details.
3. File Complete – This is when all the lender’s conditions have been satisfied and no further documentation or information is required.   It is then up to the lawyer/notary and the client to remove their subject to financing.  Remember, if the lender decides to do a final audit of your application prior to completion and if anything has changed with the property, credit, income or down payment, the lender always reserves the right to retract their approval or ask for something further.

 Angela Calla, Mortgage Expert, AMP of the Year in 2009 has been helping British Columbian families save money with the best mortgage strategy for over a decade from her Port Coquitlam office location. She is a regular contributor to national and regional media outlets, and sits on many advisory boards for mortgage lenders & insures. She can be reached directly to help you at 604-802-3983 orcallateam@dominionlending.ca www.angelacalla.ca