Purchasing your first home? Renewing or refinancing your existing mortgage? Your mortgage will likely be one of the largest financial decisions you 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

The first step involves gathering some information about you and your mortgage needs. There are several ways you can submit an application. You can apply on-line at this site, you can request to have an application form to be faxed to you, you can print off an application from this site, you can apply over the telephone, or you can arrange to meet me in our office. If you are unavailable to meet at our office, we would be more than happy to meet 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 and educate you on what you can expect and what your choices are.

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 options.

We send our information electronically directly to an underwriter and will usually get an answer back in 24 hours. Some lenders provide quicker approvals but with a large financial decision like this we would rather take a little extra time to ensure that you are getting the right mortgage for yourself. If we do not get the desired results, then we negotiate on your behalf until we are satisfied we have the best terms. We will often negotiate with several different lenders on your behalf in order to maximize the discount offered on your interest rate.

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 (120 Days).

If nothing else, getting an approval will give you some peace of mind and let you know that you have your financing in order. 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!

Your approval will be subject to verifying certain information. This will include verifying your income with a job letter and recent paystub, or showing a bank statement to prove you have enough savings for your down payment. We will provide you with a straightforward list stating exactly what is needed 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, Genworth or Canada Guaranty. 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.

If the financing is for the purchase of a new property and you have not already made an offer on a house, then now is the time to start shopping around. Once you have found the house of your dreams you will need to submit an offer to purchase. When the offer has been 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.

The only thing left to do is to register the transaction legally. This will require a lawyer or notary. 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!

If you would like to get approved or pre-approved for a mortgage, contact me NOW.