Pre-qualification

What is mortgage Pre-qualification?

Prequalification is how lenders determine if you fit the basic financial criteria for a home loan. To get prequalified, you tell a lender some basic information about your credit, debt, income, and assets, and they tell you how much you may be able to borrow
Once you are qualified, a prequalification letter can be issued and is good for 90 days.

Prequalification Letter

Prequalification letter refer specifies how much a Bank is willing to lend to you, up to a certain amount and based on certain assumptions. These letters provide useful information, but are not guaranteed loan offers.

What’s the difference between a

prequalification letter and a preapproval letter?*

There’s not a lot of difference between a prequalification letter and a preapproval letter. While there are some legal distinctions, in practice both terms refer to a letter from a lender that says the lender is generally willing to lend to you, up to a certain amount and based on certain assumptions. This letter helps you to make an offer on a home, because it gives the seller confidence that you will be able to get financing to buy the home. It is not a guaranteed loan offer.

* source cfpb Consumer Financial Protection Bureau

Many people wait to get a prequaification letter until they are ready to begin shopping seriously for a home.

However, getting prequalified earlier can be a better strategy to take advantage and acceleratre a purchase offer. 

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Monthly Payment*

Payment / Amortization Calculator

Calculate your monthly payment for fixed rate or adjustable rate loans.

Loan Type

Default amounts are hypothetical and may not apply to your individual situation. This calculator provides approximations for informational purposes only. Actual results will be provided by your lender and will likely vary depending on your eligibility and current market rates.

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A few instructions 

Loan Amount

Enter amount that represent 80% of market value

Interest Rate

Enter rate disclose by your Desjardins Bank

loan officer or the most likley rate 

Loan Term

Maximum Term is 25 Years

Loan Type

Choose Adjustable Rate

Fixed Rate not available

 

How Adjustable Rate Work ?

Adjustable-rate mortgages (ARMs) allow borrowers to pay lower interest rates on their loan for a set period, after which the rates get changed. The 7/1 ARM means that for seven years the borrower's interest rate will remain fixed.

 

For 3/1 ARM rate you enter:

Max Periodic Rate Increase = 2

Max Life Time Rate Increase = 6

Presente Rate Changes After = 36 

Rate Can Change Every = 12

 

For 5/1 ARM rate you enter:

Max Periodic Rate Increase = 2

Max Life Time Rate Increase = 6

Presente Rate Changes After = 60

Rate Can Change Every = 12

 

For 3/1 ARM rate you enter:

Max Periodic Rate Increase = 2

Max Life Time Rate Increase = 6

Presente Rate Changes After = 72

Rate Can Change Every = 12

 

*Calculator is only intended as estimate informative tool. You should always refer to the Loan Estimateor Closing Disclosure provided by the Bank.