BEFORE YOU START LOOKING
- We speak with our clients to get to know them and their situation better. We find our if they are employed or self-employed, how much they would like to put down, what kind of mortgage they are interested in. If you are ready to proceed with the full application, we complete missing info information which could be done over the phone or email, or via a secured link online – whatever their preference is.
- Then we input the information into our secure mortgage system, run credit check and do calculations to figure out the maximum purchase price our client can be approved for and what the mortgage payments are going to be, etc.
- We run the numbers by our clients, discuss different amortization terms, payments, rates, types of mortgages. If all sounds good, we submit the application the bank to lock in the rate.
- We email our clients a list of documents they will need to provide us with. We prefer to collect the documents before they found a property they liked. Our goal is to make the process of applying for mortgage as stress free and smooth as possible and if we have all or most of the docs on file before they buy, they don’t have to stress about getting us the docs ASAP when they buy. Buying a house can get very stressful! Being organized and prepared in advance, removes most of the stress.
YOU FOUND A HOUSE
IMPORTANT: When you find a house you would like to make an offer to buy, it is highly advisable to make your purchase conditional upon you obtaining mortgage financing. This is called Buyer’s Financing Condition and it is a standard condition of any purchase contract! You may also choose to include property inspection and condo docs review (if it is a condo) as your other conditions. When approving your mortgage application, the bank will not only approve you as the applicant but also the property you are buying. It happened before, that the bank declined the mortgage application because something unfavorable came up regarding the property past history. Having financing condition in place, our clients could back out of the purchase and get their purchase deposit returned to them.
- When you found a property you like and your offer gets accepted, getting financing is all a matter of us receiving the signed purchase contract and the description of the property (or MLS listing) from your realtor. We typically have 5 to 7 days at the most to get financing completely done. This is when it is important that we have all the documents already collected.
- We submit the purchase contract will all the other docs I already received from the client and send them to the bank. We typically get the approval back within 1-2 business days depending on the bank. They may ask for a couple of extra documents (which rarely happens). We provide the requested documents.
- We meet with the clients to go over the mortgage approval, terms, various payment schedule and other important points like property tax payment options, etc. We sign the documents.
- The clients advise the sellers of the property that they have a mortgage financing in place. Now the property is considered to be sold to them or it is a firm sale. The sellers cannot show the property to other interested buyers or accept any other offers.
PRIOR TO POSSESSION
- Your real estate lawyer will need to finalize the purchase. The bank send the lawyer a package with the mortgage documents to sign. These documents are called mortgage instructions. The lawyer typically receives the mortgage instructions 10 to 7 days prior to the set possession date.
- You will need to arrange for home/fire insurance for your new house. You could contact several insurance companies to get a quote.
- The lawyer’s office will contact you to set an appointment. For the appointment, they will ask you to bring 2 pieces of ID, proof of home/fire insurance (also called Binder Book) and a certified cheque for the remainder of the down payment. The buyers already gave some portion of the down payment in the form of “purchase deposit” to the sellers’ real estate office with the purchase offer.
- On possession date, you meet with your realtor who will give the keys to your new house. You will also do a walk through to ensure everything looks good.
- Congratulations!! You are now a home owner!!