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No Stress Pre-approval |
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John Santos-Ocampo, AMP Mortgage Broker
Direct Line: (604) 506-0397 Fax: (604) 628-3798 Toll free (Canada) : 1-800-504-5886 Vancouver, Burnaby, Surrey email: johnso@bcmortgage.ca
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At BCMortgage.ca, obtaining a pre-approval completely stress free. Our approach is purely informational. There is no pressure whatsoever. You will learn what lenders consider important when evaluating your application; How your qualification limits are arrived at; What you can do to strengthen your application so you can obtain the best rates and terms; and what options are available to you. We are not a bank. As mortgage brokers, we are your advocates. We work on your behalf to get you the best rates and terms possible.
There are two ways of getting pre-approved - full service (i.e., in person) or on the telephone/internet. We offer both options. However, unless you don't live in the Metro Vancouver area, we strongly recommend that you get your pre-approval in person. Obtaining a mortgage can be complex. While many mortgage brokers/lenders would gladly take your application in a few minutes and provide you with a quote, we believe you are best served if we take the time to meet. While this may require a larger investment in time for you and us, we believe that the time will be well worth it since this is likely going to be your largest single investment of your life.
Our Unique Approach to Pre-Approvals:
Here is what happens when you come in for a face-to-face pre-approval consultation:
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- With your permission, we will pull a copy of your credit bureau
- You will be able to view your credit report and your credit score. We will review your report with you and provide you with recommendations on how your score can be improved.
- On our computer screen, you will be able to see how your mortgage qualification limits are arrived at. Your qualification amount will depend on your down payment, amortization, interest rate, lender. We can also run scenarios so you know the implications of the mortgage options you choose.
- We will discuss the right interest rate plans. Should you lock-in or take a variable rate? What are the risks? Where are interest rates headed?
- We will talk about applicable mortgage programmes (e.g.,first time home buyer privileges, self-employed programmes, zero down programmes, purchase plus improvement programmes, how to make your mortgage tax deductible, etc.)
- We will learn about the closing costs you need to consider and the next steps in your purchase plans.
- Be sure to take notes during the meeting
- You can be pre-approved immediately.
You can see why we recommend a face-to-face meeting whenever possible. There is a lot of information to cover which cannot be done over the phone.
It's always a good idea to bring along the following documents when you apply for a pre-approval:
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- Downpayment confirmation (3 months bank or investment statements)
How do you start? Just send me a quick email at johnso@bcmortgage.ca and we can set up a time that is mutually convenient.
How Much Does It Cost?
There is absolutely NO charge for a pre-approval consultation
How Much Do You Qualify For?
The amount you can borrow depends on the following factors:
- Your credit
- Your income
- Your Downpayment
- The debts you current have right now (e.g., car loans, credit cards, etc.)
- The type of mortgage plan
- The lender
- The amortization
- Rental suite income
Each lender will have their own lending guidelines. In the past, most lenders were fairly consistent, allowing borrowers to spend up to 32% of your gross income on housing costs (comprised of the mortgage payment, property taxes, heat, strata fees) and 40% of your gross income for housing costs plus any other debt payments you are making (e.g., car loans, credit cards, etc.). Due to mortgage competition, the rules have changed significantly. Mortgage insurers (CMHC, Genworth and AIG) now allow borrowers with good credit spend up to 44% of their gross income on debt payments. Not all lenders have adopted these more aggressive limits. Many online mortgage calculators have not been reprogrammed to account for these new guidelines.
For a borrower earning $60,000 a year and purchasing a house with a basement suite, it is possible to qualify to purchase between $300,000 and $550,000 depending on which lender you go to. If you were unlucky enough to approach a lender offering the lower limit, they will try to convince you that purchasing within the $300,000 budget is the right thing to do. At BCMortgage.ca, it is our philosophy that our job is to advise you of your options. It is up to you to decide whether you which option to take.