Here are the steps you need to follow to ensure you get a mortgage that’s right for you!
Step One: Pre-Qualify & Strategize!
Step one is to get pre-qualified, which should not be confused with the term pre-approved. The big difference is that no approval is ever given by a lender until they have an opportunity to examine the property that you wish to purchase. Obviously that can’t happen before you actually go home shopping. Pre-qualifying will first focus on your credit, your debt load, your income, and what type of mortgage you are looking for. The best part is that an independent mortgage broker can do this in person at your house or our office, over the phone, or online through a secure mortgage application.
Once your mortgage broker has all the basic information, it’s time to find out what you’re financial and homeownership goals are. As mortgage brokers that ‘custom build’ mortgages to your specifications, this information is imperative in allowing them to seek out a lender and a mortgage product that will help you meet your goals. You’ll want to be sure you are getting a great rate, but just as important as rate are the other features of your mortgage such as pay down strategies, pre-payment privileges, and exit strategies. There’s a lot more to a mortgage than rate! Once you have selected the lender, product and strategies that meet your needs, you will know exactly what price range and quality of home you can look for!
Step Two: Find the Right Property
Once you have been pre-qualified, you can go house hunting! If you need a Realtor to help you with this, your mortgage broker can recommend a few for you to choose from.
Step Three: Approval
As soon as you have decided on the property you wish to buy, your mortgage broker will send your application and property information to the lender of your choice for approval. Once the lender has an opportunity to look at your application and the property you wish to buy, the lender will issue a “commitment” letter outlining the terms of the mortgage and any further documents they wish to see to verify your application information. Your mortgage broker will discuss the commitment from the lender with you and then forward any requested information to the lender for their review.
Step Four: The Lawyer’s Turn
At this point, the lender will have reviewed your supporting documents and notified your lawyer. Your lawyer will process all the necessary title changes and set up a time for you to meet with him to sign the mortgage documents and go over the fine print.
Step 5: Get the Keys!
By the day of your closing the mortgage lender will have sent the funds to your lawyer’s trust account. Your lawyer will communicate with the seller’s lawyer regarding an exchange of cash for keys and you are then the proud owner of your own home.
Understanding the mortgage process can help you see and understand how your entire team of professionals at Dominion Lending Centres work together to help you start your life in your new dream home!
Courtesy of Doug Cooper, AMP – DLC Key Financial