How To Apply For Mortgage With Us and Get Your Mortgage Approved
Step 1: Initial Consultation
Contact us to schedule an initial consultation. Our initial consultation meetings are done on the phone. During this meeting, we’ll discuss your home buying goals and financial situation.
Step 2: Gathering Your Documents
You’ll need to provide several documents, including proof of income, bank statements, and information about any debts you have. These documents help us assess your ability to repay a mortgage. It also helps us when we are finalizing your application, and more details are needed.
Step 3: Completing the Application
We’ll guide you through the process of completing the mortgage application. This involves providing detailed information about your financial situation and the property you’re looking to purchase. We have an online link, right from our website or we can email you the link, that allows you to access the application through a secure portal. You have your own logins, that you create yourself, and the application can be started at any time, day or night, you can stop, and come back to it later, based on your schedule. We also have it in paper form for those in person meetings. You will also need to sign or accept the credit consent form, and provide two pieces of ID.
Step 4: Submitting the Application
We review the application, obtain credit bureau report and verify any details that need clarification. Once your application is complete, we’ll submit it to the lender on your behalf. We’ll then liaise with the lender throughout the approval process, keeping you updated along the way.
Step 5: Awaiting Approval
The lender will review your application and may ask additional questions or request more documentation before making a decision. If approved, you’ll receive a ‘commitment letter’ outlining your mortgage terms. If not, we’ll inform you of the reasons and explore ways to address the lender’s concerns.
Step 6: Accepting the Mortgage Offer
If the terms of the mortgage outlined in the commitment letter meet with your requirements, the next step is to accept the mortgage offer. We will guide you throughout this process, ensuring that you fully understand all the terms and conditions before you sign.
Step 7: Submitting Signed Documents to the Lender
After you’ve signed the mortgage offer, we’ll communicate your paperwork to the lender for their review. The lender will do their due diligence which involves verifying the documentation and information that we provide to them. They will also most likely call your employer to verify that you are actually employed there. If additional documents are needed, the lender will request them.
Step 8: Arrange for an Appraisal
If an appraisal is needed, we’ll arrange for an appraiser to determine the value of the property you’re purchasing. This is usually one of the last pieces of the puzzle for the lender to perform. In certain cases, there is no need for an appraisal as some lenders perform electronic valuations, or if the mortgage is insured with CMHC or a similar insurance provider.
Step 9: Satisfy Approval Conditions
Once all the conditions of the approval are satisfied, lender informs us that your file is LENDER COMPLETE. At that point, if lawyer is needed to close the transaction, they will send lender instructions, for the lawyer to perform their part of the work. And, finally on the closing date, they will send the mortgage funds to the lawyer, so the lawyer can complete the transaction.
Step 10: Closing date
On the closing date, the lawyer will perform the final steps of the purchase, which involves the activities required to register and transfer the ownership of the property in your name. They will give you the keys to your new home, or arrange with the representatives of the seller where you can pick up the keys.
Step 11: Stay on Top of the Process
We’ll stay on top of everything, keeping you updated throughout the process and answering any questions you may have.
Important Note
It’s important to avoid making major changes before the closing date, such as quitting your job, borrowing additional money, or making large purchases. These actions could impact your mortgage approval.
Remember, we’re here to help you at every step of the way. Don’t hesitate to reach out if you have any questions or need further assistance.
* Please note that this describes the approval when purchasing a home. For other approvals, like refinancing or changing lenders, when you already own the home, the steps are similar, except for the purchasing part of the transaction.