Posted on: 08-02-05 10:24:09
A relative of ours got a preapproved mortgage with one bank and were quite satisfied with the deal. However recently they do not like the bank in question for some reason and found that another bank can offere them the same thing+ good service and prompt advice which was not being offered by the first bank. So far they were only paying the down payment and the mortage has not kicked in. I was wondering can they change their mortgage bank. They say they have signed one prelimnary sheet for the mortgage too. Is there any penalty for changing.
do advise.
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smile ...
Quote:
Orginally posted by michelle288
A relative of ours got a preapproved mortgage with one bank and were quite satisfied with the deal. However recently they do not like the bank in question for some reason and found that another bank can offere them the same thing+ good service and prompt advice which was not being offered by the first bank. So far they were only paying the down payment and the mortage has not kicked in. I was wondering can they change their mortgage bank. They say they have signed one prelimnary sheet for the mortgage too. Is there any penalty for changing.
do advise.
Mortgage Pre-approval is a commitment by the bank to the customer to provide him/her with mortgage if the customer satisfies the conditions set therein. However, a pre-approval has to be converted in to a 'firm commitment' and all the conditions have to be met before the bank releases the funds. Bank can refuse to provide the mortgage if all the conditions are not satisfied with in the time frame mentioned by the bank or if there is any material change in the situation of the client.
The customer is not bound to take the mortgage from the bank if he/she does not wish to do so and there is no penalty to the client, even if he/she has signed the documents whether preliminary or final or even if the bank has instructed the lawyer and the client does not take the mortgage he/she would not be charged penalty.
I am presuming that your relative got the pre-approval from a leading bank and are not paying any fees for the mortgage.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
For How long this preapproved mortgage stands for..?
Second thing what role a mortgage specilaist plays in this business when banks are giving you mortgages on there own..?
Quote:
Orginally posted by Mohanjeet
For How long this preapproved mortgage stands for..?
Second thing what role a mortgage specilaist plays in this business when banks are giving you mortgages on there own..?
This pre-approved mortgage is generally good for 4 months and the rate is locked for that time. However, if the rate go down then the client get the lowest rate automatically.
As far as the role of a 'mortgage specialist' is concerned, there is a lot of discussion about that in the forum and you can find that in charcha or you can visit my website http://www.pramodchopra.com" rel="nofollow">LINK and subscribe to certain free reports including 'rate watch' which will update you every week about the best mortgage rates available in the market.
The client on his own can go to a couple of banks or 3-4 banks but a mortgage professional has access to more than 30 lenders including all the big banks and other credit unions and financing companies to whom the general public does not have access to. Most of the times the mortgage professional can get you the best deal suited for your needs. Its not always the best rate that counts but the best product customized to your needs and objectives is the one you should go for. A mortgage professional can certainly help you in getting exactly that from a list of 30 plus lenders. Moreover, you get 'value added' advice for free and most of the times the services of a 'mortgage professional' is free to you because he gets compensated by the bank who gets your business.
If you have further questions, you can email me.
Good Luck.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Post deleted with request to poster to put it under classified ads.
