Discovery Call
During this phone call we will discuss your loan and property objectives, borrowing capacity, and the appropriate next steps as it pertains to your situation. The goal is to quickly determine whether you can meet the requirements to qualify for a mortgage, how much money you can borrow, and whether you are ready to proceed with a formal application. You may apply here.
Pre-Approval
Application, Documents and Credit Score Review
If it sounds like you could likely meet the requirements to qualify for a mortgage you will proceed by filling out an application, Client Agreement and Consent Form, and electronically provide documents that support your application such as income, banking and property documents. We will pull your credit and review your debt profile.
We will determine which of the lenders are the best fit with respect to rate, contract terms, and customer service for your situation. Our lenders are in constant contact providing their latest in mortgage products, rates, terms and special deals.
Provided everything checks out and the numbers work to qualify we will issue you a pre-approval which is a temporary conditional commitment for a certain dollar amount based on your given financial situation.
A pre-approval provides the confidence to take action knowing that there is a strong likelihood of being approved for financing for your objective. It will also uncover any constraints you might face and we can suggest ways to deal with them.
To "go live" for an Approval, we require a target property evidenced by an Offer to Purchase or property details and a mortgage statement for a refinance. In the case of a purchase, the process will pause here while you shortlist properties and negotiate an offer.
Approval
Lender Underwriting
Once you have a property and we are ready to "go live", we update your electronic application with the property details and financing deadline and once again review the file with preferred lenders. A target lender is identified as having the best rate and terms for your situation. We then submit your loan application and property details to that lender and it enters their electronic queue an approval can take anywhere between 24-72 hours on average depending on the lender.
Mortgage underwriting is the process lenders use to determine whether the risk of lending to a particular borrower is acceptable. To assess the risk of lending to you, lenders will evaluate your application taking into consideration your income (and monthly financial obligations), credit, down payment and the subject property.
This is where working with a mortgage broker over a single bank is beneficial as if a lender declines to provide a commitment or is taking too long, we can re-submit to the next best lender.
Conditional Commitment Processing
If your application meets the lender's underwriting guidelines, we will receive an electronic "commitment" signifying that your application has been approved subject to a list of conditions. The conditions will stipulate which documents are required to prove income, assets, employment, property details and value (for example, an acceptable appraisal). We will call you to discuss the terms of their offer. If acceptable to you, you accept their offer (sign the commitment) and we set about to meet the applicable conditions.
Generally, most of the loan conditions will be satisfied by documents that we already have on file. File complete occurs when all financing conditions have been met and accepted by the lender.
The lender then triggers "mortgage instructions" to be sent to your selected lawyer. At this point, we will advise you, your Realtor, and your lawyer in writing that funding has been "approved." If there is a financing condition on an Offer to Purchase, your Realtor can now lift that condition.
Pre-Closing
At this point, your lawyer will work with the lender to prepare and register the mortgage with the Land Titles Office and in the case of a purchase, to transfer the title of the property to you.
You will need to set up an appointment to meet with your lawyer to sign papers, provide your down payment and closing costs, confirm adequate home fire insurance, and satisfy any remaining solicitor conditions.
During this phase it is imperative that nothing changes in your employment, financial, or credit situation as the lender could still back out.
Closing
On the funding date, the lender transfers the funds to the lawyer's trust account and the lawyer then distributes the money to those who are supposed to get it. In the case of a purchase, the Realtor will provide you with the keys and the lawyer will register your name on title! The loan is now closed, congratulations!
Contact me today to start your mortgage process.
306-291-3817 or email mia@mortgagesbymia.ca