We got pre approved by TD and now we're looking for a home. My question is, how come banks dont just do it all in the first place and let you know if you're approved or not?, what's the point of pre-approval.
Working Tools so a pre approval is only 1 step of the process. What it means is that based on your income and personal situation the bank is comfortable lending you a certain amount. However, they also have to agree to the property you are buying to make sure they think it’s a safe bet. There’s a reason the banks are as wealthy as they are, they’re risk averse.
@@thevillageguru Thanks. I saw your video captured in Streetsville, I wanted to move around there coz that's where I work but as soon as I found about the house prices, we pretty much started looking at Cambridge and Hamilton Mountains. Haha
Working Tools buy quick, prices are getting crazy out there also. If there’s anyway I can assist don’t hesitate to contact me. Best of luck on your search!
great video, when do mortgage brokers provide the client with the approval papers? is it after you select a house/ right before putting in an offer OR is it better to have it before that time.
So before is called a pre approval. Once you have an agreement the lender will review the deal and give you a commitment. Keep in mind the never can review up until the day of closing
@@SS-hd5jx Yes, so lenders can issue a pre approval letter. Ask your bank or mortgage broker for it. It will say the terms and how much you are pre approved for
great video thanks..our builder actually accepted our offer and we have condition on financials. possession is after 3 months. So my question is if the condition is waived and everything is alright, during that 3 months period if something chaanges like the employment will it affect the process.. or is it done after the conditions are waived .. thanks
raj4all2007 so without seeing your contract and how it’s worded I can’t say for sure. If you’re buying from a builder do you have a 10 day cooling period or lawyer review? They are the best people to ask that question too. It all comes down to how your agreement is worded. In my experience, a co tract is a contract and when it becomes binding you have to fulfill it. But again, check with a lawyer. Thanks for watching and commenting! Congrats 🍾
That happens here too, especially in the lower price ranges where buyers need conditions the most. So in that case you have to make a decision. If you don’t feel comfortable you can try lowering the amount of days on your condition to make it more appealing. You can also try and present the most favourable offer to the seller in other ways. Keep trying and you’ll find the right one. What market are you located in?
@@thevillageguru Located in Windsor, ON. Our broker says we're very strong borrowers (high income, high credit scores, dual applicants, low DTI, and all ratios are inline). Buying in the 300-450K range. Should we risk it and offer firm deals?
@@kidwithAnose makes sense, south western Ontario has exploded with all the buyers leaving the GTA to find more affordable options. So not being involved I won’t comment or give advice on your particular situation. What I will say is that sellers typically weigh all aspects of an offer and choose the best one. Financing is only one aspect.
What is your biggest challenge with buying a home? Let me know in the comments below!
This information is valid up to date?
Very informative.
We got pre approved by TD and now we're looking for a home. My question is, how come banks dont just do it all in the first place and let you know if you're approved or not?, what's the point of pre-approval.
Working Tools so a pre approval is only 1 step of the process. What it means is that based on your income and personal situation the bank is comfortable lending you a certain amount. However, they also have to agree to the property you are buying to make sure they think it’s a safe bet. There’s a reason the banks are as wealthy as they are, they’re risk averse.
Working Tools thanks for your question, if you have any others don’t hesitate to email me: jeff@thevillageguru.com
@@thevillageguru Thanks. I saw your video captured in Streetsville, I wanted to move around there coz that's where I work but as soon as I found about the house prices, we pretty much started looking at Cambridge and Hamilton Mountains. Haha
Working Tools buy quick, prices are getting crazy out there also. If there’s anyway I can assist don’t hesitate to contact me. Best of luck on your search!
great video, when do mortgage brokers provide the client with the approval papers? is it after you select a house/ right before putting in an offer OR is it better to have it before that time.
So before is called a pre approval. Once you have an agreement the lender will review the deal and give you a commitment. Keep in mind the never can review up until the day of closing
@@thevillageguru is there a pre approval form? for confirmation or will i get that when i select a house. thanks for response
@@SS-hd5jx Yes, so lenders can issue a pre approval letter. Ask your bank or mortgage broker for it. It will say the terms and how much you are pre approved for
great video thanks..our builder actually accepted our offer and we have condition on financials. possession is after 3 months. So my question is if the condition is waived and everything is alright, during that 3 months period if something chaanges like the employment will it affect the process.. or is it done after the conditions are waived .. thanks
raj4all2007 so without seeing your contract and how it’s worded I can’t say for sure. If you’re buying from a builder do you have a 10 day cooling period or lawyer review? They are the best people to ask that question too. It all comes down to how your agreement is worded. In my experience, a co tract is a contract and when it becomes binding you have to fulfill it. But again, check with a lawyer. Thanks for watching and commenting! Congrats 🍾
@@thevillageguru thank you so much for the reply
Unfortunately, any offers with conditions are not even being considered in my local market... is there anything I can do?
That happens here too, especially in the lower price ranges where buyers need conditions the most. So in that case you have to make a decision. If you don’t feel comfortable you can try lowering the amount of days on your condition to make it more appealing. You can also try and present the most favourable offer to the seller in other ways. Keep trying and you’ll find the right one. What market are you located in?
@@thevillageguru Located in Windsor, ON. Our broker says we're very strong borrowers (high income, high credit scores, dual applicants, low DTI, and all ratios are inline). Buying in the 300-450K range. Should we risk it and offer firm deals?
@@kidwithAnose makes sense, south western Ontario has exploded with all the buyers leaving the GTA to find more affordable options. So not being involved I won’t comment or give advice on your particular situation. What I will say is that sellers typically weigh all aspects of an offer and choose the best one. Financing is only one aspect.
@@thevillageguru Thanks for your time, I appreciate your input.