The mortgage process
How get started with a mortgage
Purchasing you first home? Renewing or refinancing your existing mortgage? Your mortgage will be one of the largest financial decisions you ever make. For this reason, it is wise to learn a little bit about how the mortgage qualifying process works.
For your convenience, we have broken down the mortgage process into six simple steps:
Of course if you have any questions your mortgagesmakingadifference.com mortgage specialist will be there to assist you. To arrange for one of our mortgage specialists to give you a call fill out our online contact form or call us directly at 604 351 6424.
Step One: Mortgage Application
The first step involves gathering some information about you and your mortgage needs. There are several ways you can submit a mortgage application. You can apply for your mortgage on-line, you can request to have a mortgage application form faxed to you, print off a mortgage application apply over the telephone, or arrange to meet with one of our mortgage specialists. If you are unavailable to meet at our office, we would be more than happy to meet with you somewhere else at your convenience.
The mortgage application itself is very simple. Once we know a little about you we will work together to determine exactly what your financial needs are. At this point we will review your credit history and recommend some options. Throughout the entire mortgage application process our goal is to keep you informed and educated about your mortgage options.
Step Two: Qualifying for a Mortgage
The next step is to get you approved for the mortgage. This involves packaging up your information and sending it to a chosen lender for approval. Your personal financial circumstances and credit history will determine whether or not you are approved for a mortgage and at what interest rate. It is our job to present your application to the lender and negotiate a mortgage approval that insures you get the best possible mortgage rate and terms available to you. We will often negotiate with several different lenders on your behalf in order to maximize the discount offered on your interest rate.
We send our information electronically, directly to an underwriter and will usually get an answer back within 48 hours. Some lenders provide quicker approvals but with a large financial decision like this we would rather take a little extra time to ensure that you are getting the right mortgage for you.
Step Three: Mortgage Approval
Once approved, we will contact you and go over the details of your mortgage approvals. At this point nothing is carved in stone, so we still have the ability to change the mortgage rate and mortgage term, payment amount or frequency, amortization, etc. Once you are satisfied with the terms of the mortgage approval the lender will issue you a letter of commitment. This will allow us to hold the interest rate at which you were approved for up to 120 days.
If nothing else, getting a mortgage approval will give you some peace of mind and let you know that you have your financing in order. If interest rates go up, no problem, your mortgage rate is safe. If interest rates come down, you will automatically be re-approved at the new lower mortgage rate!
Step Four: Mortgage Verification
Your mortgage approval will be subject to verifying certain information. This can typically include verifying your income with a job letter and recent pay slip, or showing a bank statement to prove you have enough savings for your down payment. We will provide you with a straightforward list stating exactly what is needed to satisfy all the conditions of your mortgage approval.
If your mortgage is high-ratio (less than 20% down-payment) we will have the mortgage application reviewed by a CMHC or Genworth Financial Canada underwriter for their required approval. These companies provide insurance to the lender against loss. Almost all lenders require a certificate of approval from one of these two companies before they will finalize your loan.
Step Five: Purchase
If the financing is for the purchase of a new property and you have not already made an offer on a house, then now is the time to start shopping around. Once you have found the house of your dreams you will need to submit an offer to purchase. When the offer has been accepted and signed, we will get a copy from your Realtor and finalize the exact details of your loan down to the penny.
We will work directly with your Real Estate Agent to make sure the process goes smoothly. If you do not have a Realtor, contact us and we can refer you to one of the best in the business in your area.
Step Six: Mortgage Closing
The only thing left to do is to register the transaction legally. This will require a lawyer or notary. If you have a lawyer you know and trust, let us know. If not, we will be glad to refer you to one.
We will forward all the documentation directly to your lawyer and arrange for a meeting. You will make one final visit to the lawyer to confirm all the details are correct and provide a legal signature. The lawyer will receive the funds from your lender and disburse them to the seller or builder of your new home.
It is just that simple and your financing is complete!
If you would like to get approved or pre-approved for a mortgage,
