Mortgage approval is a hectic procedure. Getting your mortgage approved Canada is one of the most important processes of the home buying process. Getting a mortgage approval can be completed in certain steps. Those steps include discovery call followed by pre-approval and end on live approval. As soon as you complete your required documents, your mortgage approval process starts. Anyone who wants to mortgage property can follow these steps. Because these are the only points that you keep in mind while having such services.
A thorough Guide to get Mortgage approved in Canada
Step 1: Discovery call
The first step consists of a discovery call. This call usually lasts for 15 to 20 minutes. The call is all about discussing your borrowing capacity and loan objectives. It determines whether you can meet the requirement to qualify for a mortgage or not. The Discovery call also includes what-if scenarios and calculation.
Step 2: Request application
After the call, you proceed to the process of a mortgage application. Make sure to provide all the required documents along with the application.
Step 3: Pre-approval
The following are five basic requirements for pre-approval:
Proof of income
• Good credit
- Proof of assets
• other required documentation
A pre-approval confirms the action after generating a financial solution for the objective. Afterward, your application and documents are reviewed. Before moving on to the live approval process, you would require a target property with evidence of Offer to Purchase.
Step 4: Lender underwriting
At this stage, you need to update your application by including financing deadlines and property details. Then your loan application and property details are sent to the lender. Mortgage underwriting is the process of decision making about accepting or rejecting the loan application. Your lending underwriter must be an authorized and professional person. It is important to make sure that you are consulting a professional mortgage agency.
Step 5: Conditional commitment processing
If the lender approves your application and is ready to grant the loan he will send the approval along with a list of conditions. If you accept those conditions, the process will move further. After that, a complete file is prepared. Then, the lender gives “mortgage instructions” to your lawyer. The scenario would be different for the Offer to Purchase case.
Step 6: Pre-closing
Now the lender and lawyer will work in coordination in order to register the mortgage in Land Titles Office. In case you purchase, the title of the property will be transferred to you. Later on, you will meet the lawyer to sign the papers and pay down payment along with closing costs. You need to be careful, during this time, your financial and credit situation in addition to your employees should not change, otherwise, your lender may back out.
Step 7: Closing
During the last step, the lender will transfer the funds to the lawyer’s trust account. The lawyer will use that money as per the requirements. However, in the case of purchase, you will get the keys, the loan will be closed and the lawyer will register it on your name.
The whole process requires great care and mindfulness. Indeed, the process seems difficult and hectic but if you get the information and useful tips from friends and family, you will get enlightenment about all the procedures of this process. Moreover, you are less likely to repeat the mistakes that your friends or family did because they would warn you about certain things first. Take a deep breath and dive into the process. This beforehand knowledge will guide you during the different stages of getting mortgage approval in Canada.