Not All Green Lights Are Equal
You did the online calculator. You got the green light. You started house hunting.
Then you found the house. You made the offer. The seller accepted.
And then your broker called and said: “We have a problem.”
The green light you got was not the green light you needed.
Pre-qualification and pre-approval are not the same thing
This is the part nobody explains at the moment it matters most.
A pre-qualification is an estimate based on what you tell the calculator. No credit check. No income verification. No lender review. It takes ten minutes and it gives you a rough idea — nothing more.
A pre-approval is a commitment. A lender has reviewed your T4s, your NOA, your credit bureau, and your income documentation. They’ve given you a real number. Subject to the property — but real.
The problem: most buyers treat the pre-qualification as a pre-approval. By the time the difference matters, the offer is already in and the conditions clock is running.
What to do before you write an offer
1. Ask directly: “Is this a pre-qualification or a pre-approval?” If the answer is vague, you have your answer.
2. Get it in writing. A rate hold is not a commitment letter. Know which one you have.
3. Don’t waive your financing condition until the lender has reviewed the actual property — not just you.
4. Call your broker before the offer goes in. A five-minute call before you write changes everything.
One more thing: the stress test
Your pre-approval number is based on qualifying at the stress test rate — currently the greater of 5.25% or your contract rate plus 2%. That means your purchasing power is lower than the posted rate suggests. A real pre-approval explains this to you. A pre-qualification calculator usually doesn’t.
A green light is not a guarantee. A pre-approval is not a promise until the lender sees the property.
Not all green lights are equal. Make sure yours is the one that actually means go.
Want the full breakdown — including a side-by-side comparison table and the four steps in detail?
Read the full post on MortgageClarity.ai →
Have you been pre-approved or pre-qualified? Let me look at your file before you write an offer. Call me directly at 902-465-5533 — or start here.
I look forward to hearing from you in regard to your mortgage needs.
Patrick
p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2025-3000179) Broker (2025-3000180), Ontario(M23006699).
p.s.s.s You can download my new mortgage app here
Patrick Sawler is a mortgage broker and owner of Craigburn Capital, licensed in Nova Scotia and Ontario, with private financing available in New Brunswick and PEI. He answers his phone.
Ready to have a real conversation? Call 902-612-2688 or start your application here