|
Home Purchase and Refinance - Mortgage Process |
|---|
|
Six easy steps to a successfull loan application. |
|
Organize your documents |
If you are buying or
refinancing a home
- If you are salaried: provide a salary letter and 2 paystubs if you are self-employed: provide two
years Notice of Assessment.
- If you wish to
speed up the approval process, please also provide three months bank
statements for each bank, stock and mutual fund account.
- Provide recent
copies of any stock brokerage or RRSP accounts that you may have.
- If you are
requesting a cash out refinance please provide a letter explaining what
you plan to do with the proceeds.
- Provide a copy
of divorce decree if applicable.
|
|
If you are applying for a home equity loan |
- If you are salaried: provide a salary letter and
one month of paystubs OR if you are self-employed: provide two years Notice
of Assessments
- If you own rental property, please provide rental
agreements and two years tax returns.
- Please provide a copy of your first mortgage
statement.
- Please provide a letter explaining what you plan
to do with the proceeds.
|
|
Get Qualified |
Getting qualified before you apply for a loan can help you understand how much you can borrow.
When buying a house, you may get pre-qualified or pre-approved. You can typically get pre-qualified over the phone or on the Internet in a few minutes. A pre-qualification is not as beneficial as a pre-approval where you have to go through a more rigorous process which includes verification of your credit, income, assets and liabilities. It is highly recommended that you get pre-approved before you start looking for a house. This will help you:
- Find out the maximum house you can buy, so you don't waste time looking for properties you cannot afford.
- Puts you in a stronger position when you are negotiating with the seller because the seller knows that your loan is already approved.
- Helps you close quickly, since your loan is already approved.
|
|
Shop Mortgages with Phil Weir of Oriana Financial |
To shop for a loan you
will need to:
- Think about how long
you plan to keep the loan. If you plan
to sell the house in a few years you may want to consider an adjustable
or variable loan. On the other hand, if you plan to keep the house for a
longer time, you may want to look at fixed loans.
- Compare different
programs. Shopping for a loan can be difficult.
With so many programs to choose from, each of which has different rates,
points and fees, it's hard to figure out which program is best for you.
That's where an experienced Mortgage Specialist can help you make a
decision that's best for you.
|
|
Obtain Mortgage Approval |
Once your loan application
has been received we will start the loan approval process immediately. This
involves verifying your:
- Credit history
- Employment history
- Assets including your bank accounts, stocks,
mutual fund and retirement accounts
- Property value
|
|
|
Based on your specific
situation, additional documents or verifications may be required. To improve
your chances of getting a loan approval:
- Fill out the loan application completely.
- Respond promptly to any requests for additional
documents. This is especially critical if your rate is locked or if you
plan to close by a certain date.Do not make any major purchases.
- Do not buy a
car, furniture or another house until your loan is closed. Anything that
causes your debts to increase might have an adverse affect on your current
application.
- Do not move money into your bank accounts unless
it can be traced. If you are receiving money from friends, family or
other relatives, please contact us.
- Do not go out of town around the closing date.
If you do plan to be out of town when your loan is expected to close,
you may sign a power of attorney to authorize another individual to sign
on your behalf.
|
|
Close the Loan |
After your loan is
approved, you will be required to sign the final loan documents. This will
normally take place with your lawyer. Be prepared to:
- Bring a certified check for your down payment
and closing costs if required. Personal checks are normally not
accepted.
- Review the final loan documents. Make sure that
the interest rate and loan terms are what you were promised. Also,
verify that the name and address on the loan documents are accurate.
- Sign the loan documents.
Your mortgage will
normally close shortly after you have signed the loan documents.
|
|
