To help you understand the mortgage application process, I have created a simple outline of what you can expect to happen and when these tasks will occur.
Please use this as a guideline, not an absolute; every situation is a little different.
What will happen, and when!
Step One: Pre-Approved
Fill in an online application, or I’ll take the application over the phone, where I will
- Confirm your qualifying income
- Assess your credit and liabilities
We will have a Zoom or phone meeting to discuss your pre-approval and your options.
- Determine your affordability
- Discuss the right mortgage product and terms
Are you ready to shop? Or do you need time to save, pay down debt, or find a co-signer?
We will help you set your timeline and action plan.
Step Two – Now that you’re qualified
Find a knowledgeable realtor you are compatible with (you’ll be spending much time together.)
Dig down and find out what your needs vs. wants are, use your CHMC Homebuyers guide
and CMHC Workbook GO Shopping!!!
Step Three – You’ve found “THE” house
You’ve found your dream home and made the offer – the fingernail biting starts.
Your offer is accepted. Hooray! Now the clock starts ticking; you typically have five days (We are fabulous under pressure, five days is more than plenty).
Please send me your purchase agreement and MLS (as soon as it’s signed) Or send me an email introduction to your realtor, and we will get the required documents from their office directly.
If you are utilizing the “Purchase Plus Improvements Product”, I will need the quotes asap. The quotes, along with the purchase agreement, make up your loan amount.
Once your offer has been signed and accepted, it’s time to finalize your application and documents:
- Request your letter of Employment + Pay Stub
- Proof of down payment and other documents that are outstanding or provide clarification
- If an appraisal is required, I will organize an appraisal appointment
- Your realtor will help you set up your home inspection
If there is a price change due to the inspection, remember to let me know as soon as possible.
Step Four – Time to sign the documents
We will meet to sign your mortgage documents. To keep the process moving, we typically meet by Zoom.
We will discuss the terms of the mortgage, make any changes required, and sign your mortgage commitment by Docusign and Zoom.
Once we have the signed mortgage commitment and the remainder of your documents are emailed or uploaded to our secure portal, we will send everything to the lender for review, acceptance, and audit.
Once the lender has accepted our submission and given us the all-clear, or “File Complete” notification, you are free to remove your financing condition, and your purchase will now be firm, the home is yours.
Depending on the time of the year, it can take several days before the lender reviews and provides a “File Complete” notification to close the file.
It is not unusual for the lender to request further information or clarification. This does not mean the purchase is in jeopardy, it only means they need a new document in a different format.
Step Five – The great waiting game
Call your insurance provider to insure your new home. You will need your mortgage information, lawyer information, and MLS handy. The insurance company will send a “binder” letter to your lawyer’s office to confirm you have insurance.
Set up your utilities, book your movers, and address changes with Canada Post.
Step Six – WE are all done!
- We will send an email in advance to let your lawyer know your mortgage is on the way. We will provide the details of your mortgage, your ID, and Void cheque to the lawyer.
- Your file has been through the auditing process, made it to funding, and on the way to the lawyer’s office. (Your lawyer will receive mortgage instructions).
Start packing if you have not already done so
We will be following your file, sending you updates and rate drops, as needed. We will follow up with you on the day of closing, typically by text. Remember, we are here to support you; call, text or email if you have any questions!
Reminder: You typically go to the lawyer’s office three or four days before closing. And you will receive your keys in the late afternoon.