My name is Ryan Boughen, and I take pride in ensuring my clients are fully informed of the mortgage process.
Obtaining a mortgage takes a lot of planning and patience to ensure things go smoothly throughout the entire transaction. There are many different organizations and people involved in each mortgage, with each playing a critical role to ensure that your mortgage is approved and funded on time. In my latest blog post, I outline what you can expect during the mortgage process.
Introductions are a very important part of my business as a vast majority of my clients are brought to me through word of mouth. Through my commitment to providing my clients with an exceptional and professional experience, they are comfortable in their decision to mention me to their friends and family members. I hope that by the end of our time together, you feel the same way as the individual who referred you.
2. Exploratory Meeting:
This is an opportunity to discuss any concerns, questions, and fears you may have about the process of obtaining your mortgage. Some areas of discussion may include: CMHC fees, down payment, debt servicing, credit score, and appraisals. At this time, it may be beneficial for you to bring the following documents: 2 years of NOAs, most recent pay stub (or T1 General if self-employed) and your current mortgage statement (if applicable). If you are self employed, please bring your T1 Generals as well. By bringing in these documents to our first meeting, or emailing them to us ahead of time (ideal), we are able to expedite this process and get your application started.
3. Explanation and Signing:
Once all required documentation has been obtained, we will be able to submit your mortgage request to a lender. It is once we have received an approval that we will either meet or electronically send you your mortgage commitment and documents to be signed. Just like at any time during this process, feel free to ask any questions you may have. And remember, just because you are approved for a mortgage does not mean you are obligated to accept it. If a part of your deal falls through, or you are no longer needing financing for your home, you are in no way bound to the commitment until it is registered by your solicitor.
4. File Complete:
Your file will be marked complete when all documents required by the lender are fulfilled and all documentation has been signed. When we have received final approval from the lender, we will contact both you and your REALTOR® regarding the completion as well as instruct your lawyer for them to complete their final steps.
5. Instruction of Lawyer:
Your lawyer will be the final piece of finalizing your mortgage as well as your home purchase. Your lawyer will typically receive documents from your realtor and lender, anywhere from 15 to 60 days prior to the mortgage closing, but there are always extenuating circumstances that may shorten that time frame. We always check with your lawyer to ensure the documents have been received and to review any pertinent information. I will then confirm to you that the documents have been received. They will then compile the legal documents necessary to ensure the completion contains all necessary elements of a legal contract. The signing of these documents is usually completed 5-10 business days before the closing date of your property. If you have not been in contact with your lawyer and it is less than 7 business days to possession, please let us know so we can follow up. It is here where the funds for down payment, legal fees including land titles fees, title insurance and PST on CMHC insurance, etc. will be requested by your solicitor to be brought to this meeting, typically via a certified cheque.
Your closing date is a very exciting time as it marks the transfer of ownership from the previous owner to you. It also marks the end of endless documents needing to be signed and the beginning of home ownership!