• Mortgage Process

  • Obtaining a mortgage today is not quite as easy as it once was. The process can be overwhelming, especially if you are a first time homebuyer. Here is a brief overview to help guide you through the mortgage process as it relates to buying a home.

  • 1) Get Pre-Approved

    • A common mistake many buyers make is to start looking at houses before getting pre-approved. Generally, a realtor will not want to work with a client until they have been pre-approved.
    • A pre-approval will help you determine how much you qualify for, the payment amount you are comfortable with, and will lock in an interest for you for 120 days (to protect you against rising rates while you shop for houses).
    • At the pre-approval stage, Mitch will work through a mortgage application with you and ensure you have all the information you need to start shopping for your home.

  • 2) Find your Home

    • Now the fun part! Once you have your pre-approval and a set price range, you need to find where you want to live.
    • It is a good idea to have a realtor help you during your search. A realtor will know of listings before they hit MLS, will help during negotiations, and will provide you with great advice on what to look for and what to avoid in a home. As a buyer, you don't pay for the services of a realtor.
    • Once you have find a home you like, you will make an Offer to Purchase to the seller(s) (with the help of your realtor). It is recommended that you always make the offer "conditional upon obtaining financing". This gives you time to secure your mortgage financing before the offer becomes firm.

  • 3) Obtain Mortgage Approval

    • Once the seller(s) have accepted your offer, you enter the conditional period, usually 5-7 business days. Consider this a grace period to get all of your conditions met before the offer becomes firm. If you are unable to remove your conditions before the end of this period, the offer will become null and void. Typical conditions include obtaining financing, completing a home inspection and obtaining home insurance.
    • During the conditional period, Mitch will submit your application to secure your mortgage financing. It will typically take 1-2 business days to get a response on your application, unless an appraisal is required in which case it would take slightly longer.
    • Once Mitch has received your mortgage approval, he will contact you immediately to review the approval and ensure you will be able to satisfy the conditions of the approval. Typical conditions include verifying your income and down payment.
    • If you are confident that you can satisfy the conditions of the mortgage, you can have your realtor waive the financing condition.
  • 4) Complete Paperwork
    • Now that your mortgage is approved, you will meet with Mitch to review your mortgage approval in detail. Mitch will explain all of the terms and conditions so that you have a full understanding of your mortgage.
    • You will also be asked to provide paperwork to satisfy the mortgage conditions. Typical documents that will be required are:
      • Employment letters
      • Paystubs
      • T4s or Notice of Assessments
      • Bank or investment statements to prove source of down payment
      • Void cheque
      • ID
    • Other documents may be requested depending on your situation.
    • Generally, we will ensure that the paperwork is completed at least 15 days prior to your closing date.

  • 5) Meet with Lawyer

    • Once the bank/lender has received your signed mortgage approval, they will send the required documents to your lawyer.
    • You will meet with your lawyer approximately one week prior to your closing date to sign the legal paperwork.
    • Your lawyer will let you know how much you owe for down payment and closing costs. You will be asked to obtain a certified cheque or bank draft from your bank for the amount owing to the lawyer.
    • On the day of closing, your lawyer will contact you once everything has been finalized (normally between 11am and 5pm) and you can pick up your keys!