Our Lending Experts understand that purchasing a home is a very big commitment and getting a mortgage might be overwhelming process for the first time home buyers. We begin by listening to your unique situation and simplifying the process of obtaining the right mortgage from the start.
We usually see clients (especially First Time Buyers) after they have met with a Realtor and the question of pre-approval came up… We imagine it goes something like this:
Client: We want to buy a home!
Realtor: Great, I will be happy to help. Do you know what your price range is?
Client: We haven’t the slightest idea, can you help us figure it out?
Realtor: Absolutely, you’ll need to get a pre-approval. I suggest you contact Igor and Ivan at National Equity Lending, they are experienced mortgage brokers and we’ll get you pre-approved quickly.
Client: Sounds good, we’ll give them a call and touch base with you as soon as we know what we qualify for.
Buying Process (the short version):
First Step: Getting Pre-Approved
After providing us with your income, preferred down-payment, and consent to check your credit, we are able to underwrite your file and give you the exact maximum mortgage amount and mortgage payment. We will also show you various mortgage scenarios based on your budget, rate, and amortization to help you plan your monthly cash flow.
We will make sure you are aware of all the costs associated with buying a home
- Lawyer/Notary
- Property Transfer Tax
- Property Taxes, Inspection
- Appraisal
- Strata Fees
- Moving
Last but not least, we get you a rate hold with one of our lenders. Rate holds are typically guaranteed for 120 days, so you can have peace of mind knowing that your rate will not increase while you search for your ideal new home.
Second Step: Making an Offer to Purchase
This is where you negotiate the price and terms of the contract of purchase and sale.
Third Step: Obtaining Mortgage Approval
This is where we get to business. At this point we gather all the required documentation for the lender and send in your file for mortgage approval.
Most common documents lenders ask for and review:
- Income
- Letter of Employment
- Pay-Stub
- Verbal confirmation with employer (The underwriter makes a call to your employer)
- Down-Payment
- 90 Day bank account history
- RRSP statements
- Gift letter from immediate family member and corresponding deposit into your account
- Contract of Sale and Statement of Adjustments (If you sold your previous home and using the proceeds for down-payment)
- Property
- Contract of Purchase
- MLS
- Property Disclosure
- For Condos: 12 months of Strata Minutes, 2 Years of Annual General Meeting Minutes, Strata From B
- Appraisal (if required)
Usually the approval process will take 5 business days, but it does vary by lender as well as time of the year (the busier the real estate market the longer approvals take due to the volume of mortgage applications). As a guideline we follow this time line:
- 2 days for application and credit review
- 2 days for documentation review
- 1 day just in case the lender asks for additional information
Need it done faster?
We can do it! We can have you approved as fast as 4 business hours, just make sure you have all your documents ready for review.
Fourth Step: Closing and Possession
The last step in the process is for you to sign all the documents at the notaries/lawyers office. This is when the property title is transferred into your name and the mortgage is registered again the property.
Usually a day or two after you get the keys and take possession of your new home. Congratulations!
Want more details or have questions? Feel free to call or email us.