The number one question a homebuyer often has is “What does the mortgage process entail?” In very simple terms, following is an outline of the process upon which you are about to embark:
a) 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 will help you understand what your monthly costs will be and determine your price range.
- Guarantees the rate – from 90-120 days. And we will 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.
b) Put in an offer: Once you have found the property that meets your needs, you will put in an offer that will be accepted or countered. This may go back and forth until you reach an acceptable price with the vendor.
c) Offer is accepted:
- A copy of the contract will be sent to mortgage broker/lender
- 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 property and final approval letter
d) Remove Subjects: At this point, your financing is in place and you are ready to proceed with the purchase of the property.
e) Lawyers’ Office:
You will be asked to provide any money that is to be used as your down payment,
which is not already on deposit with your realtor. Typically, you will go in
1-2 days prior to the completion date. The lawyer will prepare documents to
register the mortgage and transfer title to you. All mortgage documentation will be signed at