HomeEducation › Mortgage Process

An overview of the Mortgage Process

1. Your application

The mortgage application collects some key information about you. By reviewing this information in advance of us meeting, it allows me to analyze your situation and prepare questions. Apply here.

2. Discussion to determine the mortgage design

I do more than simply place your mortgage with a lender.  In this stage, I want to understand your needs today and your goals for the future.  Armed with this information, I am able to properly advise you on key features such as fixed rate vs. variable, amortization period, repayment structure, prepayment features, and bendability.  We’ll also review your budget, other types of debt you may have, and your down payment available.  It’s at this point that I like to meet people face-to-face, especially if it’s the first time.

3. Collection of key information

Qualifying for a mortgage requires certain information and paperwork.  Based on the application type and income/employment sources, I’ll provide you a laundry list of information that the lender will require either now or in the future.  Luckily, I will only require copies of the information and they may be delivered to me by scan, fax, or in person.  Furthermore, I will order a credit bureau report that will provide a score rating.  This credit bureau report helps the lender make an assessment to the riskiness of the applicant. 

4. Application sent to lender(s) for approval

Next, I will submit your mortgage application for an approval.  I have over 30 lenders to choose from which include major banks, credit unions, trust companies, and other lenders that deal exclusively in the broker channel.  This wealth of product choice helps me to find the best product for you at the best rate possible.

5. Review of the Commitment Approval and Conditions

The lender will send me a Mortgage Commitment that outlines the product terms, rate, and payment amount.  This is their commitment to lend to you and is subject to meeting the pre-funding conditions.  It’s at this stage that you would waive your “condition of financing” if applicable and are purchasing a new property. 

I’ll put together an approval package of disclosure document and commitment letter for signatures.  I prefer the signing to be face-to-face but it can be done electronically if that is preferred. 

6. Satisfy the final conditions

From the commitment letter, I’ll put together another list of the final information that will be required by lender prior to funding.  As an example, they may require 3 months of banking statements to verify the income.

7. Meet with your lawyer

After the lender has reviewed and approved the final documents, they will send an instruction package to your lawyer.  You will need to book an appointment to meet them so you can provide identification, sign documents, and review your closing costs.  Prior to your appointment, they will advise you on what to bring with you and what to expect. 

On the closing day, the lender will transfer your mortgage funds to your lawyer to complete the transaction.

8. Post-closing

After your mortgage closes and you take possession of your home, you will begin to make preauthorized mortgage payments to your lender.  From me, you can expect to receive infrequent e-mail updates with information on the economy, tips, market trends, new products and wealth building strategies.  You are always invited to call or email me with any questions, concerns, or feedback.

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