Smart mortgage decisions start here!
Whether you are a first time buyer OR renewing/renogiating your existing mortgage, I will happily help simplify the loan process. I have summarized the complexities involved only for you to see what's going on behind the scenes in putting your mortgage. Rest assured, I will handle all the heavy lifting to find you the best mortgage.
Typical Mortgage Process
The mortgage loan process largely consists of "mortgage paperwork", which is mostly about providing documents needed for a mortgage that show how much you earn, where you've lived, monthly debts and account balances. You can provide alot of this information online through the mortgage application or when I followup with you.
I will always try to make the loan process as simple as I possibly can. If you have any questions at all, I can help answer them and help you to understand the process in full.Contact me for more details
Items that I could need from you when it comes to the Mortgage Process include some of the following (I will summarize your unique doc list)
• Agreement of Purchase and Sale
• MLS Listing
• Contact information for your lawyer: name, address, phone and fax numbers
• 2 pieces of personal identification for all parties involved
• Income and employment verification
• Recent pay stub(s)
• Letter of employment – 30 days old from the date of application
• T4(s) • Notice of Assessment(s) if self employed (NOAs)
• Proof of Down Payment: 90 day history of savings/investments, with name and account numbers
• Gift letter with bank statement
• Void cheque
• Copy of home insurance policy
Pre-approvals don't take much time. They involve pulling a credit report that shows your credit score and credit history as reported by third-party, respected institutions. This helps to be able to pinpoint a loan amount for which you qualify. Mortgage pre-approvals also signal to the seller that you’re a serious buyer.
Once you have found your home and made an offer you will hopefully have the deal approved by both parties. With terms of the deal approved by both parties, the purchase agreement (a binding offer) is signed by the seller and buyer. At this point, you can move forward to finalize the loan.
Mortgage Loan Application
I will work with you at this stage to gather the needed documents from you and start the loan application process. I will provide a Loan Estimate, which includes closing costs, the interest rate and monthly payments (principal, interest, taxes and insurance).
Loan processors gather documentation about the borrower and property, review all information in the loan file and assemble an orderly and complete package for the underwriter.
The underwriter is the key decision-maker. They closely evaluate all the documentation prepared in the loan package. They cross check to see if the borrower and property match the eligibility requirements of the loan product for which the borrower applied. Underwriters review the borrower’s credit history and their capacity to repay the loan.
The closing is the moment for which you’ve been waiting. It’s time to sign a bunch of documents and complete your purchase or refinance. Some docs seal the deal between you and the lender. Other docs seal the deal between you and the seller (if it’s a purchase transaction).
When everything is signed, your participation in the closing meeting is done. Congrats! The very last closing items happen in the background; the title company will complete the recording and funding.