The Mortgage Financing process

A person using laptop to reach out to mortgage consultant.

What Does the Mortgage Process Entail?

In very simple terms, following is an outline of the process upon which you are about to embark:

Get Prepared:

Gather the following information to have at hand when you meet with your lender or mortgage broker. This will help them determine whether you qualify for a mortgage:

  • Contact information for your employer and your employment history.
  • Proof of address and your address history.
  • Government-issued photo ID with your current address.
  • Proof of income for your mortgage application.
  • Proof of down payment (amount and source).
  • Proof of savings and investments.
  • Details of current debts and other financial obligations.
  • Know your credit score. Your credit score is a snapshot of your financial health and it shows how consistently you pay off your bills and debts. A good credit score is incredibly valuable.

Get Pre-Approved:

Avoid any hiccups or obstacles before you begin the home shopping process. Being pre-approved helps in the following ways:

  • Determines price range – it’ll help you understand what your monthly costs will be and determine your price range.
  • Guarantees the rate – from 90 to 120 days. And we’ll automatically adjust your rate down with any market reductions.
  • Allows you to put in a competitive offer – become a successful bidder with a short subject to financing requirement.
  • A pre-approval does not mean that a lender has fully reviewed your documentation and you may still need the approval of a mortgage insurer. This is why using the knowledge and expertise of a mortgage professional is so important.

Put in an Offer:

Once you have found the property that meets your needs, you’ll put in an offer that’ll be accepted or countered. This may go back and forth until you reach an acceptable price with the vendor.

Offer is Accepted:
  • Send us a copy of the accepted Purchase and Sale Agreement and the MLS listing.
  • An appraisal is ordered (if necessary).
  • Send in any remaining documents required for financing (income confirmation, down payment confirmation, etc)
  • Send an inspector in (if applicable) – I can help you arrange this.
  • Receive the lender’s approval on the property and the Mortgage Commitment (Approval) letter.

Remove Conditions/Subjects:

At this point, your financing is in place and you’re ready to proceed with the purchase of the property.

Lawyer’s Office:

You’ll be asked to provide any money that’s to be used as your down payment, which is not already on deposit with your realtor. Typically, you’ll go in 1-2 days prior to the completion date.

Closing Date:

Closing Day is the day you finally take legal possession of your home. Your lender will provide the mortgage funds to your lawyer, and they pays the previous owner, register the home in your name, and give you the deed and keys to your new home. Congrats!