While you may have a mortgage approval, your mortgage doesn’t actually fund until the day you close on your new home. During that period of time, keep the following tips in mind to ensure a smooth closing.

1. Be careful about taking on additional credit, i.e., new credit cards or “Don’t pay for one year” incentives.

2. Keep your bills up to date including any mortgages you may have.

3. Keep your down payment for your down payment and plan for your closing costs, such as land transfer tax, appraisal fees, legal fees, and property tax adjustments, so you won’t be caught by surprise.

4. Keep an eye on your investments, especially if you are using them as your down payment.

5. Try not to pack any important documents relating to your mortgage/home purchase.

6. If at all possible, just before funding is not a good time to quit your job, move to part time or reduce your income.

7. Tell your mortgage agent if there has been a decision to change the closing date.

8. Ensure all paperwork is in a minimum of 10 days prior to closing.

9. Get fire insurance in place and investigate life insurance options.

10. Respond promptly to all those involved in your home and mortgage transaction.

Happy Closing!

Courtesy of Sandra Tisiot, AMP – DLC Smart Debt 

This one time advance will allow you to make the changes you need to make your home perfect!

Have you been trying to find that almost perfect home? All homes have their flaws and imperfections. Some consumers can deal with these deficiencies in a home, but for others this can be a deal breaker.

Maybe the kitchen needs an update, the bathroom is in desperate need of a makeover or maybe the home just needs a fresh coat of paint with the enhancement of hardwood floors, the quickest, cost effective and most powerful impact on a home!

The purchase plus improvement product is for consumers looking to purchase a home that has great potential but needs a little TLC. With the purchase plus improvement program you can make those needed improvements on your home immediately after taking possession and you can have these improvement costs rolled into your home loan for one easy payment. All of these projects can increase functionality, beauty and potentially add value to your dream home.

As a rule with this home improvement financing option, your improvement maximum is 10% of the “as improved value” of the home to a maximum of $40,000 of improvements. With as little as 5% down payment, this product can work to get you into a home that is near perfect!

For example: if the purchase price of the home is $350,000 and the “as improved value” or post renovations of the home is valued at $390,000 you can qualify for 10% of the $390,000. Which means you can borrow $39,000 to cover your renovation expenses.

Once you have found a home, you will have to provide quotes from a licensed contractor including all costs associated with your renovations. Your mortgage planner will need to submit these quotes along with your purchase approval to the lender.

The lender may require an appraisal of the home with an as-is and as-complete value. However, if you are putting less than 20% down payment on the purchase, often only a final inspection is required to confirm the work on the quotes has, in fact, been done.

Once closing day has arrived, you will be required to pay your down payment, and at this point mortgage funds will be advanced. On the day you take possession of your home you can start working on the renovations. Make note that the renovations will have to be fully completed and inspected before the real estate lawyer can advance you the funds that the lender has been instructed to hold back. In other words, you will have to find some way to pay for the contractor to do the work, you will get reimbursed the funds once it has been inspected and confirmed that the work is completed. At no point will you be given the money prior to work being completed.

Depending on the lender, there are many variations to this mortgage product so it would be a good idea to speak with a mortgage professional at Dominion Lending Centres.

If you think that you can customize your home with this mortgage product, give me a call, I would love to help you through your home buying process and help you achieve your dream of homeownership.

Courtesy of Josee Picco, AMP – DLC City Wide Mortgage Services