Buying a new home will likely be one of the most expensive purchases 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 process into six simple steps.
Here Are Six Easy Steps To Getting A New Mortgage:
Step 1: Application
Step 2: Qualifying
Step 3: Approval
Step 4: Verification
Step 5: Purchase
Step 6: Closing
Step One - The Application:
The first step involves gathering some information about you and your mortgage needs. There are several ways you can submit an application to us. You can apply on-line at this site, you can request to have an application form faxed to you, you can print off an application from this site, you can apply over the telephone, or you can arrange to meet with one of our agents. 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 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 can review your credit history and recommend some options. Throughout the entire application process our goal is to help educate you on what you can expect and what your choices are.
Step Two - Qualifying:
The next step is getting you qualified for the loan. This involves packaging up your information and sending it to a chosen lender for approval. The way this information is presented will often determine whether or not you are approved and at what interest rate. It is our job to sell you to the lender and make sure you get the best possible rate and terms.
We send our information electronically directly to an underwriter and can often have a response back in just hours. If we do not get the desired results, then we negotiate on your behalf until we are satisfied we have the best possible conditions. We will often negotiate with several different lenders on your behalf in order to maximize the discount offered on your interest rate.
Step Three - Approval:
Once approved, we will contact you and go over the details of your approvals. At this point nothing is carved in stone, so we still have the ability to change the rate and term, payment amount or frequency, amortization etc. Once you are satisfied with the terms of the approval we will issue you a letter of commitment. This will allow us to hold the interest rate at which you were approved for up to four months. To learn more about rate holds see the rate holds section to the right of this page.
If nothing else, getting a pre-approval will give you some peace of mind and let you know what price range of home you may purchase. If interest rates go up, no problem. Your rate is safe. If interest rates come down, you will automatically be re-approved at the new lower rate!
Step Four - Verification:
As you might expect, your approval will be subject to verifying certain information. This will include things like 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 straight-forward list stating exactly what is needed and help you to satisfy all the conditions of your approval.
If your loan is high-ratio (less than 20% down-payment) then at this stage we will also get you approved with CMHC or Genworth (GE). These are companies who 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. To learn more about CMHC or GE see the Mortgage Default Insurance section to the right of this page.
Step Five - Purchase:
If you have not already made an offer on a house, then now is the time to start shopping around. When you have found the house of your dreams you will need to submit an offer to purchase. Once this offer is 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 - Closing:
Now that your purchase is in place the only thing left to do is to register the transaction legally. This will require a lawyer, preferably a Real Estate Lawyer. 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!