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Applying for a mortgage can be overwhelming for a lot of people, but whether you are a first time home buyer, refinancing or have been through the mortgage process many times before, it is all about being prepared. Below we will take you through the steps of applying for a mortgage and what you can do to prepare yourself.
Step #1
This step involves the gathering of personal financial information from you and anyone else applying for the mortgage with you. Some of the information your mortgage professional is looking for is as follows:
Social Insurance Number (SIN)
The name of your employer
Gross annual income
Length of employment
Current address and how long you have been there
A list of all your debts
A review of your current and past credit history
Your net worth
Prior to initiating the mortgage application process it is always a good idea to review your credit report yourself to review for any oddities that may be there that could delay the processing of your mortgage application.
You can request a copy of your credit report from the following credit bureaus.
It is also recommended that you get a copy of your report from both agencies to compare for any inconsistencies.
Step #2
Your mortgage agent will now take all the information gathered in Step #1 and shop around to various lenders to get you the best possible rate.
Step #3
Once a lender has been selected, they will forward a Commitment Letter outlining the details of their mortgage financing offer and any conditions that will need to be met. Your mortgage agent will assist you in reviewing the Commitment Letter and have you (and any other parties named) sign the letter confirming your acceptance of the offer.
Step #4
Once all conditions for the mortgage have been met (ideally within 10 days), the lender will forward your mortgage package to the lawyer for processing which includes:
Meeting with you to discuss the legalities of the mortgage
Handling the disbursement of funds
Registering your name with Land Titles
Typically you want to allow 2 weeks for the lawyer to have everything processed.
Every mortgage transaction is unique and you no doubt will have questions throughout the process. Use these steps as a guideline and dont be shy to ask your mortgage professional questions. They are here to help make this process as straightforward as possible.
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