Mortgage Broker

Application

The application is the first step in determining how much you can qualify for and obtaining details about yourself and the property you are purchasing.

To get started, an application can either be taken over the phone, online or in person.  It takes about 10 minutes to go over the details. 

Credit Report

As part of the application, your credit report is obtained. A credit check is always required when taking an application as it is usually the biggest determining factor in the interest rate and how much you will qualify for.  Your credit report is information about your borrowing (e.g., loans, credit cards, lines of credit, etc.) history.  Generally speaking, the better your credit history, the better rate you can obtain.

Documentation 

Standard documents that often need to be submitted to the lender include copies of:

• Most recent Notice of Assessment (after you file for taxes)
• Two most recent T-4's
• Letter of employment
• Agreement of Purchase & Sale
• MLS Listing
• Property Disclosure Statement
• Property Survey or Title Insurance (lawyer will deal with this)
• Confirmation of down payment (showing 3 months of savings history in your account and/or Gift letter).

Mortgage Insurance

If you put down less than 20% of the property's purchase price, Mortgage Insurance will be required. Generally, an insurance premium is added to the mortgage amount. In this way you don't have to come up with the extra amount upon closing. However, it gets added to your mortgage and then you pay it off as you pay down your mortgage. The premium's range from 1.0% to 3.10% of the principal mortgage amount depending on the amount you put down.

Appraisal

An appraisal is required under the following conditions:

• The buyer puts down more than 20%;
• The property is in a remote location;
• The property is very unique;
• The property is a leaky condo or has had problems such as a grow-op in the past. 

The mortgage broker will hire a professional appraiser who will prepare a Market Value Appraisal Report. This will indicate whether the market value of the home being purchased is similar to the purchase price (or refinance value).  If the mortgage is high ratio (under 20% down payment) then the appraisal is covered in the CMHC/Genworth mortgage insurance application fee. If the mortgage is conventional (not insured), then the buyer is usually required to pay for the appraisal.

Approval

Once your mortgage application (or pre-approval) is approved, I will contact you to discuss next steps.  In the event the application is declined, I will discuss other financing options with you.

Closing

Once all documents are reviewed and the mortgage is fully approved, the lender will instruct the paperwork to the solicitor acting on the mortgage.  The "instructions" inform the solicitor what documents are needed on closing day and how the mortgage money will be made available to the solicitor for payment to the home seller. The solicitor will contact you to set up an appointment to finalize the legal work and obtain the balance of the down payment and closing costs.

To find out what your mortgage payment might be, or to get an idea of what you can qualify for, check out our Meridian Coastal Mortgages website.