Comments on: Ready to buy a home? What experts say many buyers forget to consider first https://www.canadianmortgagetrends.com/2025/05/ready-to-buy-a-home-what-experts-say-many-buyers-forget-to-consider-first/ News on Canadian mortgages, mortgage brokers, and mortgage rates. Tue, 27 May 2025 16:46:59 +0000 hourly 1 https://wordpress.org/?v=6.7.2 By: Kelly https://www.canadianmortgagetrends.com/2025/05/ready-to-buy-a-home-what-experts-say-many-buyers-forget-to-consider-first/#comment-56846 Tue, 27 May 2025 16:46:59 +0000 https://www.canadianmortgagetrends.com/?p=68003#comment-56846 You state: “But as a first-time homebuyer, if you write [an offer] on one of my listings, I am asking for your letter of approval. And if I don’t have it, I don’t want to look at your offer. ”

While the realtor may think they are protecting their seller they are not and maybe adding more risk to the transaction. Pre-approvals look at the borrower qualifications, a lender approval additionally requires approving the property selected .. ensuring it meets with lender requirements including value, location, insurability, etc.

Additionally the majority of lenders’ “preapprovals” are just rate holds and are not underwritten leaving the “opinion” of approval on the broker / lending officer. Again without a property there is nothing to pre-approve other than borrower qualifications, which are also subject to change.

Unless an offer can be 100% funded by cash there should always be a Condition of Finance to protect the purchaser and seller. My hope is that “cash offers’ will be disallowed unless again it is truly cash. It is putting undue stress and unnecessary risk on everyone.

]]>