What do I need to get pre-approved for a pre-construction condo?

In order to get a pre-approval set up for the purchase of a pre-construction condo a full credit application will be taken including a credit check. Your pre-approval can be obtained through a bank or a mortgage broker.

When you apply there are 4 areas that the lender will review:

1- Income: You should know exactly what your current annual income is for each purchaser named on the purchase agreement. If you are self-employed consult with broker or lender to understand current mortgage rules and guidelines on how to qualify your self-employed income.

2- Credit: A credit bureau will be reviewed to verify your current outstanding debts (if any), your credit history and your credit score. You can review and obtain your credit report from the Equifax or TransUnion website.

3- Down Payment: The lender will be interested to know the source of your deposit/down payment. Builders typically require a pre-approval for the amount of your purchase price minus deposits. Keep in mind that your down payment on closing can be more or less than the deposit amount.

4- Condo Suite Details: The address, floor plan and purchase price information of the condo should be made available.

The lender will assume that the information provided verbally is accurate and only when the mortgage application is formally submitted at the time of closing will the details need to be confirmed with supporting documentation.

This question was answered by Chris Molder (Mortgage Broker)