The Mortgage Approval Process
For most people, choosing a mortgage plan and buying a home are the most important financial decisions they will make.
Before beginning the mortgage process:
Review your credit score. It will play a significant role in qualifying your mortgage loan.
Calculate how much you can actually afford before shopping for a new home.
Save the down payment required to secure your mortgage loan.
Set aside additional spending for closing fees, insurance, property taxes, home inspection and other costs associated with purchasing a new home.
The Three Step Mortgage Process:
Step One: The Mortgage Application:
Schedule an appointment with your Mortgage Broker to discuss your mortgage needs and initiate the formal mortgage application process.
Your Mortgage Broker will ask to see the following documents:
Employment information
Current mortgage information (if applicable)
Assets and liabilities
Credit report (and/or authorization for one) and basic information such as name, address, SIN number and birthdate.
Employment Verification: A current Letter of Employment and pay stub. You may also be asked to provide last year’s T4’s or Notice of Assessments for further history. If you own a business, be prepared to provide the last 3 years of Revenue Canada Notice of Assessments and possibly financial statements.
Sale Agreement for your current home and mortgage statement (if applicable).
Purchase Agreement (if applicable)
MLS listing (if applicable)
Confirmation of your down payment.
Step Two: Determining the Type of Mortgage:
Your Mortgage Broker will assist you in determining the very best mortgage solution to fit your financial needs and goals. Once your broker has a good understanding of your financial status, goals and plans for the future, they will evaluate your overall strategy for purchasing a home.
Step Three: Mortgage Approval
Once you’ve been approved for a mortgage, your Mortgage Broker will walk you through the forms and answer any questions you may have. With the help of your mortgage broker, your lender will forward the mortgage instructions to your lawyer. The final stage is to meet with your lawyer to sign all of the legal documents.
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Understanding Your Mortgage Options
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Is Your Credit Score Striking Out Or Knocking It Out Of The Park?
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