Are You Really Approved? The Difference Between Mortgage Pre-Approval and Approval.


Getting pre-approved for a mortgage is a great first step in your home shopping process. It will give you an idea of how much you qualify to borrow, which in turn gives you a budget to work with when you are looking. This is a number to work with before you decide on a certain property. It is important to note that there is a difference between pre-approval and final approval for your mortgage.

When it comes time to apply and get approved for your mortgage, there are a number of things that are examined in more detail by the bank and your approval amount may change. This part of the process happens once you have chosen the property you would like to buy.

Just because you got pre-approval for a mortgage does not guarantee your final approval for your mortgage when it comes time to purchase your home. A change in your financial circumstances, or the property appraising for less than anticipated will affect your final approval for a mortgage.

If you need a mortgage to purchase your home, make the offer/agreement conditional on financing even if you have your pre-approval. You don’t want to get stuck in a contract to buy a house you cannot afford if your financing falls through.

Moving Forward:
There are a lot of things to consider when you decide to buy a home, sometimes it can be overwhelming.  If you have any questions about making this decision we offer a flat fee consultation service. You can come to chat and ask questions. We'll give you some advice about your options and what your next steps might be. There is no commitment after the consult. If you have decided to go ahead with a purchase, and wish to retain us we would love to work with you. You can find our information at :

If you have any questions about mortgages you can call us at (902) 826-3070 or email us at to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $100+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.  

By: Briana C. O'Grady, J.D. – Associate Lawyer

The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. Nothing contained on this blog is legal advice or constitutes a legal opinion. While it is our goal to provide information which is current, legislative changes and court decisions, among other matters, may result in some information no longer being current or accurate. You should consult a lawyer before relying on any information. The views expressed herein by individual contributing lawyers posting entries to the blog are solely those of the authors and should not necessarily be attributed to or considered representative of the firm of Highlander Law Group Lawyers