The Process Begins By…
• You will provide your mortgage application (in person, over the phone, via our secure online application, email, or fax) and give written consent for credit bureau. We’ll talk about mortgage rates and options, the loan amount available to you, decide what mortgage product is the best fit and much more… And you can ASK QUESTIONS! There are no stupid questions, so feel free to ask each and every question about the process you have.
• We will access your credit report and ensure the minimal credit score and debt-servicing requirements are met.
(If there are any issues that arise from the application or credit bureau that may impair your ability to be approved for your preferred mortgage, we will talk about solutions and resolutions at this point)
• We’ll let you know what verification paperwork will be required so you can start collecting it. It is best to be prepared with your verification documents upfront so we may provide the mortgage lender your documents at time of application submission. Some best-rate incentives demand upfront paperwork, so be prepared! Getting you the very best rate may depend on it!
• Once we have gathered all the information and have decided what mortgage will fit you best – we will submit your application securely to the lender of choice. This will go directly to our dedicated underwriter for review.
• If necessary, an appraisal is ordered from a local appraiser. On average, appraisals take a few days to a week to be completed. However, commercial appraisals and properties in very remote areas may take much longer.
Once the Lender has your application…
• The underwriter has to make sure that all of the required documents substantiate what is stated on the application. The lender will review all documentation and make follow-up calls if needed (to us, or to employers to confirm salary details as an example).
On a side note… The underwriters do try to get to all applications as soon as possible. But they can get busy during peak times of the year. A normal service standard is 1 day turn-around, but during busy seasons it may take a few days for your application to get reviewed.
• The underwriter has to review every document to make sure that all of the numbers are correct and to determine if your mortgage request meets their lending criteria or guidelines (our job is to know all that criteria too so no time is wasted). Also, it is common for the underwriter to come back to us and request further documentation to support the application. Don’t worry! Try to remember that the underwriter wants to approve your mortgage request. He or she will ask for further documentation only if it is required per the loan guidelines or if she believes it strengthens the overall application for you. Get what they need as quickly as possible so that they can approve the loan.
• Once the underwriter has determined that your profile meets their criteria, he or she will review the property details to make sure that the subject-property meets their dwelling criteria and is acceptable. If the appraisal is available, it will be reviewed at this point. If it is not available yet, it may be a condition to the approval.
• Once the loan is approved, we will receive a mortgage commitment back from the lender outlining the terms of the loan. The commitment will also show any other conditions placed on the loan, if any. The conditions will be items (such as appraisal, water potability tests, further paperwork, etc.) that the lender must receive and accept prior to the loan funding. Once we have the mortgage commitment, we will be in contact immediately to tell you the exciting news! We’ll plan to meet to sign all the documents.
(If for some reason, the lender has declined your application – this is where we shine as Mortgage Brokers. As we deal with a multitude of lenders, we have several options for you and we’ll just keep going until we find you an approval).
You’re almost done…
• Once we have signed all the mortgage commitment documents and have met all the conditions, your file will now be considered unconditional and is ready for the legal department. This is where our work is done and the lawyers take over. However, we always remain your first point of contact for any other questions or concerns you may have.
• The lawyer will receive your loan file and prepare all of the final legal documents for your closing. You will be contacted to set up an appointment to go sign all of these documents. The lawyer will also ask you to bring in ID and proof of Homeowners Insurance (plus any other documents deemed necessary by the lender).
• When you’re at the lawyers, please ensure to read the documents and make sure that you understand everything. If you have any questions, make sure that you ask them. (Remember, “THERE ARE NO STUPID QUESTIONS!”)
• Once all documents are signed and sent back to the lender, the lender will be prepared to release your funds in 1 to 3 days.
And then that’s it! You have successfully completed the mortgage process!!