Updated: Apr 23, 2020
Okay so you’ve been pre-qualified for a mortgage and worked diligently with your real estate professional to find a home. After you’ve found the home your real estate agent places you in the hands of a mortgage broker to get approved for your financing. This can often be a time of great anxiety, it doesn’t have to be. Here are the steps required to getting a mortgage, so you can know what is involved.
Preliminary Discussion with your Mortgage Professional – Your broker will assess your situation and gather all the key information needed to put the application together and know what documents will need to be submitted. A well seasoned broker however will also provide insight, advice, and products or programs that may benefit you in your unique mortgage situation.
Gather Documents – Your broker should not only lay out what documents are needed but provide information on what the documents look like, and even help you track down the right paperwork for your situation. This ill save time and confusion. Refer to this link for more information on documents as needed: https://www.gembafinance.com/documents. We know this can likely be the more challenging part of the application process so any additional help should be welcomed with open arms.
Approval - Typically within 1- 3 business days after receiving the required documentation, the broker will be able to confirm a lender, a rate, and an approval for your mortgage. At this point you can remove any financing conditions on the purchase and sale agreement if applicable.
Commitment - The lender will issue a commitment outlining the terms and conditions of your mortgage. You must sign these, and any other compliance documents needed from your broker.
Legal – Your file is then forwarded to your legal service provider or lawyer. At this point, the lawyer will have their own set of conditions that they must satisfy for the lender. An above and beyond broker will be in contact with your lawyer and ensure that they have everything they need to fund the mortgage smoothly. The broker will be the bridge in many cases between the lender and lawyer.
Signing the formal documents – The lawyer will invite you to his/her office to sign the mortgage documents and collect a cheque for any closing costs that may be due. Closing costs can include but are not limited to Land Transfer Taxes, prorated property taxes, legal fees, and tax due on closing for any additional insurance placed on the mortgage.
Funding – After signing the formal documents, your job at this point is basically to just wait until the funding date. Of course, there are many other things to consider when buying a home, such as movers, furniture, setting up home services etc.
See not too scary right? Hopefully now that you know the process and what you should expect of any mortgage professional with experience and an eye for a smooth process, you will be able to buy your next home with more confidence.