Primary reasons for mortgage financing:
- Purchasing a home
- Refinancing your existing mortgage for debt consolidation or an equity take out of funds for renovations or investment purposes
Purchasing a Home - A Pre-Approval
- Determines how much you can afford
- An application is taken – personal and financial information
- A credit check is completed (this ensures that your credit is in good standing and if there are any problems, they can be dealt with before entering into an offer to purchase)
- A “Pre-Qualification” does not usually include a credit check Know which you have obtained!
- Once your Pre-Approval is in place, your rate is usually guaranteed for 90 to 120 days (depending on the lender)
You’re Ready to Purchase
- You have found the perfect home
- An Agreement of Purchase and Sale is prepared by your real estate agent (or depending on the situation, a lawyer)
- Certain “conditions” are inserted into the body of the offer (i.e. Condition on financing and home inspection)
- Once negotiated, we require the executed Agreement of Purchase and Sale and the MLS Listing (your real estate agent usually faxes these documents to us)
Mortgage Approval
- We submit the application to the Lender
- An approval is obtained from the Lender
- An appointment is arranged to come into our office and review the Mortgage Commitment
Conditions in a Mortgage Approval (Commitment)
- Lenders require certain documents once they decide to lend you the mortgage money
- Items such as letters of employment from your employer, current paystubs, confirmation of your down payment by way of bank statements, RRSP’s, gift money from family are just some of the documentation required
- If you are self-employed, then tax returns and Notice of Assessments will be required
The Meeting
- When we are sitting together at the office, we go over the details of the Mortgage Commitment
- We will discuss payments, payment options, amortization, rates and any other questions you may have
- Closing costs are also discussed to ensure you know exactly how much money you will require on closing day
Always remember…
The VanderDuim Mortgage Team is here for you — Before, during and after your transaction closes!! Get in touch with us today!