Mortgage pre-approval vs approval: What's the difference? (and why they're both important)

Homebuyer's School

What's the difference between a mortgage pre-approval and mortgage approval? What are criteria to get each? Who do you need to get approval from? In this episode, we talk with Mujtaba Syed, Mortgage Specialist with the Bank of Montreal, and discuss the differences between the two approvals and their requirements. We also look at examples of why a bank might not give approval and what happens if you get declined by a mortgage insurance provider. Finally, we see if you can switch lenders after pre-approval and reasons why to make a change.

Prefer to watch the video or read and take notes? See the transcript:

https://stories.brookfieldresidential.com/homebuyersschool/mortgage-pre-approval-vs-approval-whats-the-difference

We discuss the following items:

• Difference between a mortgage pre-approval and approval
• What are your options if you get declined for mortgage insurance?
• Reasons why a bank may not find a property desirable to grant a mortgage approval
• Can you switch lenders after getting pre-approved (and some reasons to)
• Do you need to go through the approval process again if you switch lenders?
• Does a pre-approval affect your credit score?

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