The mortgage process can be stressful… ask anybody who’s gone through it once, twice or twelve times. It never gets easier, and now with the new financial rules and regulations in place, it seems to be even more daunting for people. Let’s change that!
As a mortgage broker, I get questions sent to me every day from new homeowners or those looking to renew or refinance. What is the best rate? Variable or fixed? Which lender and why? Those are just the tip of the iceberg. Below I have created a “What You Can Expect” guide to help you better understand the mortgage process, enabling you to make more informed decisions. That is the HW Advantage!
Let’s take a look at what to expect, who’s involved, and how the process typically works.
The Mortgage Process – Find your broker:
Every mortgage process should begin by contacting a trusted mortgage broker (in my non-biased opinion of course). They will be able to answer all of your questions up front, set expectations and deadlines, and act as a resource throughout the entire process. They will coordinate with your realtor, lawyer, bank/lender, and accountant (if necessary) to ensure a successful and timely closing experience. My Tip: Be upfront and honest with your broker (they are on your side), especially regarding any credit or income issues. This will help you avoid most last-minute complications.
The Mortgage Process – Completing your application form:
While the application forms can be lengthy, it is critical to fill out all of the information requested properly for the broker so they can provide you with multiple options and ultimately secure you a mortgage that will best suit your needs now and into the future looking at rate / term / lender / strategy. My Tip: As you are completing your application form, organize and provide income documents that you have handy (current pay stub, recent T4, NOA) along with your application to your broker.
The Mortgage Process – Mortgage approval:
Once your broker has obtained a mortgage approval, which typically takes between 1 and 3 days after your application is submitted, you will be issued a mortgage commitment along with a personalized checklist. The Mortgage Commitment will outline rate, term, payment options, and mortgage conditions, and your checklist itemizes the conditional documents that are required in order to satisfy the conditions of your mortgage commitment (ie pay stub, T4, void cheque etc). My Tip: When purchasing a new property make sure you review the entire mortgage commitment with your broker and get all your questions answered first before waiving your condition of financing in your purchase agreement.
The Mortgage Process – Satisfying your mortgage approval:
Once you’ve provided all required documentation to your broker they will review and forward to your selected mortgage bank/lender and confirm all conditions from your mortgage commitment are satisfied. At that time they will coordinate with your lawyer to ensure they have been instructed by the lender and are prepared to complete the purchase, refinance or mortgage renewal. My Tip: Follow-up with your lawyer directly to assume they have received what they need on your behalf. Never assume!
The Mortgage Process – Closing:
Finally your lawyer will contact you to set up a signing appointment. They handle all the legal aspects of registering your new mortgage and manage all the money coming in (ie down payment) and going out (ie funds to seller) for the transaction to be completed. They will also sign and review the conditions of the mortgage with you one last time to ensure your understanding of the mortgage details. My Tip: Do your research and go in with any questions you might have. Don’t assume that you will have time to ask later.
Overwhelmed yet? Good thing you completed Step 1 of this process and you have your trusted mortgage broker by your side for all the questions you’ll have along the way.
Purchasing a new home, renewing or refinancing are big decisions and a lot goes in to obtaining and securing a great mortgage. It’s important to feel comfortable and informed throughout the entire process. Our HW Advantage team wants to work with you to ensure you understand your options and are confident in the decision you ultimately make.
Want to get started? Contact us by filling out the form below or by calling us at 905-541-6961.
Please call me with any questions.