Mortgage financing can be a very complex process. Often, the greatest source of anxiety is simply not knowing what stage your file is at.
As we go through this process together, we ask for your patience. We are working to strengthen your application, to ensure that you get the best solution, and ultimately to make your entire mortgage experience as smooth as possible.
STEP 1: Meeting & Pre-Approval
This first step involves us getting to know you a bit better, as well as taking a complete and comprehensive application. We typically do this either in person or via telephone.
If in person, we recommend that you set aside 1 hour for this meeting. We’ll ask you to bring in some documents – you can also email them to us in advance – which we’ll review with you. We’ll also check your credit and typically try to provide you with some idea of the possible mortgage solutions available.
If by phone, we recommend that you set aside 30 minutes. Once we’ve covered the basics during our call, we’ll email you a checklist for the remaining documents we need. After all the documents have been recieved, we’ll review your file in full and update you with the possible solutions we can provide.
STEP 2: Mortgage Approval
Once you’ve given us the “green light” to handle your mortgage, we get your file off to the lender that best meets your specific needs and requirements – and of course has the best solution. It can take anywhere from 1 day to 1 week before we hear back from the lender, and we will update you with the expected timing. Our goal always is to be mindful of your deadlines and strive to meet them.
Each lender has a different process to follow, so we can’t tell you exactly what to expect. Typically, the lender will review documentation, and may require an appraisal or additional documents at this stage. It remains important to forward these details at your earliest convenience to complete your file.
After the lender has reviewed your file completely, they will issue a final sign-off, confirming that we have met all of their conditions. If your transaction involved a purchase, we will notify both you and the realtor that you are now free to remove your financing condition. Occasionally, there may still be minor information the lender requires that won’t be possible to get until closer to your closing date. We’ll provide an update and a reminder about these details so that you provide the lender with all the necessary information and your mortgage is funded on time!
STEP 3: Solicitor Instruction & Closing Review
Once we’ve received the “File Complete” from the lender, we will instruct the lawyer acting on your behalf. During this instruction process, we will send them all the details with respect to your transaction. In addition, 7 to 14 days before you are set to either take possession of your new property or complete the refinance of your existing one, we will contact your lawyer to ensure that there are no issues and everything is on track for a timely close.
If for any reason you will not be physically able to attend your lawyer’s office to sign the paperwork (such as a pre-planned holiday and/or trip), you need to notify us immediately so that other arrangements can be made.
STEP 4: Lawyer Visit
Approximately 3 to 7 days prior to your closing date, you will need to meet with your lawyer to sign the mortgage documents.
Prior to the appointment, you must ensure that you have the following items taken care of:
- You have the balance of your down payment funds accessible, as you will need to provide the lawyer with a certified draft to cover the down payment and other closing costs. Your lawyer will contact you in advance as to this amount.
- You’ve arranged for home insurance with the loss payable to your chosen lender. Our team and/or your own insurance provider can assist you with this. You will not get the keys to the property until you have adequate insurance.
Your lawyer will go through the documents with you, paraphrasing each individual section. If you would like to review the documents in detail, we suggest that you ask the lawyer to send the documents to you PRIOR to your meeting. The documents are very lengthy and you will not have time to read them while in your lawyer’s office.
STEP 5: Possession Date & Move In
Finally, on the big day, you will receive your keys and possession of the house, at your agreed upon time.
It is important to have your realtor or a third party, other than a family member, walk through the property to inspect the condition you are receiving it in. Check for things like missing lights, curtain rods, etc., or property damage that was not disclosed to you. It is more difficult to make a claim against the seller if you do not have an independent party to support your claim.