Imagine losing $50,000 or MORE?

That’s exactly what the caller in the video below stands to lose.

All because she didn’t know the difference between a Pre-Approval and a Pre-Qualification.

It’s a common story.

Client attends a showroom, likes what they see, writes an offer, gives a deposit and anticipates closing 2 years down the road.

Speculators were purchasing condos by simply putting down deposits with no intention of ever closing.

The market was so hot, they would simply flip the paper.

In the old days that may have been true.

But, many are finding out the hard way that those days are gone. Even more concerning is how they got lulled into the mistaken notion that if a lender pre-qualifies them for a mortgage, it means that they’ve been pre-approved for the purchase.

That couldn’t be further from the truth.

In fact, there’s a BIG DIFFERENCE between those terms.

A Pre-qualification simply calculates the amount of mortgage you can qualify for based on your total combined household income and debt. It does not take into consideration your down payment, where it came from, your source of income and most importantly, your credit history.

A Pre-approval, on the other hand, takes into consideration all of those things.

Banks will often do a pre-qualification over the phone. Unfortunately, it can be as worthless as the paper it’s written on.

If you or someone you know is in a situation like this, we may have some alternatives for you.

Contact us at 604-273-2002

Mark Fidgett
Vancouver Mortgage Broker