Three Different Types of Pre-Approvals - Which is best?
- Author
- Scott Dillingham
- Published
- Wed 15 Dec 2021
- Episode Link
- None
In this informative episode, Scott explains the three types of mortgage pre-approvals available to homebuyers, their differences, and which option provides the most security when making offers in today's competitive market. This crucial information helps buyers understand how to protect themselves when considering firm offers without financing conditions.
Key Timestamps:
[0:00] Introduction to Pre-Approvals
- Three distinct types
- Market context importance
- Risk considerations
[4:30] Verbal Pre-Approvals
- Common misconceptions
- Credit score variations
- Income calculation challenges
[8:45] Calculator/Rate Hold Pre-Approvals
- Document requirements
- Rate guarantee benefits
- Limitations and risks
[12:30] Fully Underwritten Pre-Approvals
- Required documentation
- Verification process
- Lender review details
[16:45] Income Verification
- Employment documentation
- Self-employed considerations
- Income calculation methods
[21:15] Risk Management
- Property condition importance
- Insurance considerations
- Common challenges
[25:30] Protecting Yourself
- Documentation importance
- Lender communication
- Decision-making process
Key Pre-Approval Types:
1. Verbal Pre-Approvals
- Least reliable option
- Based on verbal information
- No documentation verification
2. Calculator/Rate Hold
- Rate guarantee benefit
- Limited verification
- Not full approval
3. Fully Underwritten
- Most comprehensive
- Complete document review
- Strongest approval type
Important Documents Needed:
- Job letters
- Pay stubs
- T4s or T1 Generals
- Corporate documents (if applicable)
- Credit reports
Contact Information:
- Website: lendcity.ca
- Phone: 519-960-0370
