The federal government’s latest “stress test” places considerable emphasis on first-time home buyers.
Pre-Qualification can be done online and commits nothing. For the buyer, it delivers a broad estimate of what you can afford; for the mortgage company, it delivers a lead — you.
With that come first-time mortgages.
To help simplify that process, first-time home buyers want to be up to speed on the three stages of securing a mortgage.
One is called Pre-Qualification.
Two is Pre-Approval
Three is Approval.
All are explained in complete detail on a website called REW (Real Estate Wire), but here’s a quick synopsis for First-Time Home Buyers:
Pre-Qualification can be done online and commits nothing. For the buyer, it delivers a broad estimate of what you can afford; for the mortgage company, it delivers a lead — you.Pre-Approval, underwriters will check all your financial information and determine what size of mortgage you qualify for, and commit to it for up to four months unless your circumstances change.
Mortgage Approval is confirmation, once you pick the property and the lenders assess the final financials.