Our Process
Helping You Get Into A New Home
You’ve decided you want to buy a home. Congratulations! Now comes a lot of excitement and second-guessing. Buying a home, especially your first one often leaves people with a mix of emotions. Nervous, anxious, and excited are some of the common emotions. At Mortgage Rate Canada, I’m here to help take away the anxiety and nerves and leave you eager to move into your new home.
Before you even start looking at houses, the first step should be applying for a mortgage pre-approval. I will begin by collecting some of your information, income, debts, assets, and things like that to get a basic understanding of you and your finances. I will also pull a credit report at this stage so that I have the most accurate look at your financial situation. The pre-approval process can be completed over the phone, online, by email, or in person.
From there, I begin looking for the best lenders available based on things like interest rates, their mortgage products, payout penalties, and other aspects. At this stage, I will be able to provide you with an estimate of how much you are approved for.
Because the pre-approval is good for up to 120 days, the amount could change if your finances change during that time. One example would be if you decided to buy a new vehicle, which is not recommended until after you’re in your new home.
Time To Go Shopping
After being pre-approved, you’ll begin looking at properties with your real estate agent. During this stage you might find something on the higher end of your budget and wonder, ‘can I really afford this?’ Give me a call and I can figure out what your monthly payments would be so you can make an informed decision.
Once you do put an offer in, and it’s accepted, we’ll get together again to finalize which lender you want to go with. We’ll go over the terms and conditions with you before sending the paperwork off to your lawyer
Buying A Home
You might feel lightheaded when you are considering buying a new or pre-owned home. It is a significant expense that affects your life and lifestyle for a long time. But the process doesn’t have to be scary.
Let me take you through the initial steps. I can meet with you and help you through the details of securing a homeowner’s mortgage you can afford.
First you need to gather all your income information.
You need your latest tax assessment or a letter from your employer on earnings. Lenders look into your credit rating, so you may want to check that before applying. If you spot any errors, you can contact the companies for corrections.
Make a list of any properties you already own, or other assets like a paid-off vehicle, valuable art, antiques or jewelry, to take with you. If you have extra income that supplements your regular income, be sure to let them know those figures. Even GST and government rebates boost your income level.
Next, It's Time to choose a lender. I can help with that!
Most people go to one of the Canadian banks to secure mortgage approval. That can be good, but sometimes other lenders offer lower interest rates and more flexible conditions. If one lender says you don’t qualify, I can find more lenient lenders. There are many tips I can show you about home mortgages.
You can get pre-approval for a homeowner’s mortgage that lets you know what range of houses you can look at. It also speeds things up in the purchase process.
Once you find that perfect home, the real estate agents will draw up purchase contracts. They include the purchase prices, legal fees, their fees, and things that are excluded from the sale.
Many people ask for a home inspection report before putting in an offer. You may have to pay for it, but it could save you from any serious post-purchase costs.
Another thing required is homeowner insurance. This protects you and the bank, should anything happen before the mortgage is paid in full. The lender will require homeowner’s insurance, which is different from mortgage insurance. They will have specific details about the type of insurance and any changes to the home after the purchase. This is pretty standard practice.
You need copies of the purchase contract to co-ordinate with the lawyers, real estate agents, the lender, and the seller.
Another thing required is homeowner insurance. This protects you and the bank, should anything happen before the mortgage is paid. The lender will require homeowner’s insurance, which is different from mortgage insurance. They will have specific details about the type of insurance and any changes to the home after the purchase. This is a pretty standard practise.
You need copies of the purchase contract to co-ordinate with the lawyers, real estate agents, the lender and the seller.
Your mortgage is approved!
The last thing is arrangements for possession dates and property walkthrough. You get the keys, and the seller gets their money. The whole process sometimes takes up to two or three months to complete, especially if there are delays in the title transfer office.
Contact me at the Mortgage Group Calgary office, and I can guide you through the mortgage approval process. I can also clarify the terms on the contract so that all those worries can go away. I want you to have a positive, smooth acquisition process that starts the new page of your life in your new home.
