Underwriting walkthrough
The 6 stages between "pre-approved" and funded.
Pre-approval is the second gate of six. This is what each underwriter actually checks at each stage — and what can break the file before closing.
Interactive stage walkthrough
Click any stage to see the underwriter's checklist and the most common failure mode.
Qualification
10–30 minutesNo credit pull, no underwriter assigned. A bank or broker plugs numbers into a calculator. This is what most banks call a 'pre-approval' in marketing copy — it is not one.
What the underwriter checks
- Income volunteered (not verified)
- Down payment volunteered
- Soft estimate of maximum mortgage
What breaks here
- Treating a qualification as a real pre-approval and waiving financing condition on that basis.
Rate holds and rate strategy
A real pre-approval includes a rate hold. Standard holds run 90–120 days. The hold protects you against upward rate movement; you still benefit if rates fall before commitment.
Rate strategy is a separate exercise from rate shopping. The right rate for an accepted-offer file with a tight financing condition is whichever rate comes with the fastest underwriter — not the lowest headline number.
Conditions ladder
Every conditional commitment carries a conditions list. The standard ladder, in lender order:
- Confirmation of income (letter + paystubs + NOAs)
- Confirmation of down payment (90-day statements + gift letter where applicable)
- Appraisal at or above purchase price
- Property insurance binder valid on closing day
- Title search and lawyer instructions
- For condos: status certificate, reserve fund, special-assessment review
Written and reviewed by the Canadian Mortgage Compass Editorial Desk. This page is general information for Canadian readers and is not mortgage, legal, tax, or financial advice, and not an offer of credit. Rules, rates, and lender policies change; confirm your own situation with a licensed mortgage professional in your province. Editorial policy · Corrections