Did You Know. That only 5% Of Pre Approvals actually FUND?

Dated: November 17 2020

Views: 66

Did You Know?

From our Friends at Mortgage Element Group
Yup, that’s the average.... only 5% of pre-approvals actually fund... so what does this mean?
.
Well, if you owned a business and 5% of consultations actually became a purchase that makes you money... how much effort would you put into them? That’s what banks think too!
.
This is why at the preapproval stage often clients documents are not reviewed and underwritten and their credit is not checked.
.
And this is why we see people feel like they are treading water with no direction.... you would think “what can you buy?” Is a simple question to answer but it isn’t.
.
What you qualify for is determined by:
💰Your income... not what you say you make... the to the penny income from your documents that can be used according to the lender policies and government stress test
✅ your credit. Not the free score you get off the internet... your actual FICO (formerly beacon) score PLUS your full credit profile and what it says about you
👇down payment- how much money you have to put towards the property. Remember you also need to have enough money aside for closing costs too!
🏡 lastly... the details of the property you place an offer on - property taxes, square footage (heating costs), condo fees & location
.
So this is why “what can I buy” isn’t something you can answer in 5 minutes... and if it is that quick you might want a second option.... truly my app can give you an answer in about 30 seconds but it is only as accurate as the information you put in there. So if you put that you make $80k/year and you don’t... well you can go buy a hone in that range but that doesn’t mean someone is going to give you the money to be able to close.
.
🤔so that was a long post.... sorry. But not sorry because people need to know... Reach out today and we can connect you to a Broker for a full preapproval so you know what you can buy and you can give your realtor the correct price range to shop in for a home you will qualify for with multiple lenders... we want to know you have options and choice.
For more details or to speak with a Mortgage Broker - you can check out Details Below
.
Blog author image

Melody Sitchon

Melody Sitchon, ABR, SRES and Broker. She is an active Broker of Record, representing buyers and sellers on a day-to-day basis, and considers education for her clients an important part of her role as....

Latest Blog Posts

The federal government will pay up to $5,000 to make your home more energy efficient

The federal government will pay up to $5,000 to make your home more energy efficient     **Starting today, May 27-2021, Canadians will be able to apply online for $5000

Read More

NEW CHAGES TO STRESS TEST

NEW stress test changes effective June 1, 2021To my valued clients & friends,Despite previous announcements OSFI (banking regulators) have announced that the new benchmark stress test rate will

Read More

Renovations That Pay Off on Resale

If you’re planning to do some home renovations that pay off on the resale market, you’re not alone. Renovations are the premise behind many successful house-flipping careers,

Read More

OFSI Announcement and What it Means for You as a Buyer

The OSFI announced today they are re-opening the discussions around the qualification rates for the stress test in Canada. Right now the qualification rate for best interest rates used for the

Read More