July 28, 2009
Employed Persons, First Time Home Buyer, Interest Rates, Pre Approval, Proving income
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So you have moved into your first home.
It is everything you hoped it would be and you couldn’t be happier.
Lets take a moment to look back at the journey you traveled because you have come a long way.
First you made the smart move by starting working with a mortgage professional. Someone who knew what they were doing and genuinely wanted to help you through the process.
Second you figured out all about the mortgage process and how your situation fits into this. Most importantly you got a clear path forward of what needed to be done to get you into your new home.
Third you released all the stress from the process by getting all your ducks in a row before you put down an offer by gathering all necessary paperwork.
Fourth you put an offer on a place and felt relaxed and confident that it would easily get approved. Ant it did! We sent all the paperwork to the lender where it was quickly accepted.
Next you went to your lawyer’s office. They explained all the documents to you in an easily understood fashion. Then you signed the documents.
So now we are back to where you are right now – a home owner. Enjoy it because being a home owner is a very rewarding experience.
July 22, 2009
Employed Persons, First Time Home Buyer, Interest Rates
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Over the past few weeks we have been looking at the process for getting a mortgage to purchase a house. By this point we have a lender that is committed to loaning us the amount of money you will need to get your home.
The next part of the process is pretty simple.
Once the lender has accepted all of the documents that were sent to them they will contact your lawyer. Your lawyer’s job is to be the liason between you and the seller (or their lawyer). The lawyer confirms the amounts and requests the key data. Once complete the lawyer and you will be in contact with each other and set up a meeting. In this meeting you will sign some key paperwork. (To determine specifically what you will be signing please contact your lawyer directly.)
When you have signed all the documents the lawyer will then file your data with land titles. Your property will then be in your name on the title and the lender will show as a group that has interest in your property.
The cost of the lawyer’s services can range anywhere from $800-$1500.
Ta da legally speaking you now own the property.
The process for getting a mortgage isn’t hard. We all just need the map and a person who is willing to work with you to help you along the way. This is what a great mortgage broker should be. We can be so much more than just a person who can get you a great rate.
Feel free to call if you have any questions at all.
July 14, 2009
Employed Persons, First Time Home Buyer, Interest Rates, Proving income
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Over the past few weeks we have been looking at the process for getting a mortgage to purchase a house. By this point we have done all of the prep work that is required before putting down an offer. We feel confident about our situation and now know exactly how much we can spend on our new home.
At this point I will defer to any high quality realtor about the best method for choosing a house or putting down the offer. A great realtor will not steer you wrong.
Once you have an Offer to Purchase that has been signed by both parties (the buyer and the seller) send a copy to your mortgage broker along with a copy of the MLS feature sheet if available.
The mortgage broker will need to send this data to the lender as soon as possible. We want to give the lender and insurerer (if needed) all the time they will need to get your deal approved.
When the lender approves the file the mortgage broker will contact you to let you know what are the particulars of the deal. These will include:
- The amount being borrowed.
- The interest rate.
- The payment frequecy
- The conditions that need to be met before the lender will fund your purchase.
It will be our job to review the conditions and the paperwork to ensure that we can meet all their requirements and understand the particulars of the mortgage being offered. When we completely understand and have all the paperwork needed the mortgage broker will then send all the data to the lender. The lender will review and confirm that everything looks great.
And from here we move onto the next step of Signing Some Documents with Your Lawyer.
July 7, 2009
Employed Persons, First Time Home Buyer, Proving income, Small Business
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One of the most stressful parts for people in the home purchase is after the Offer to Purchase when people have to gather all the paperwork to send to the lender. The issues come when something does not jive with what was on the original application and people are left scrambling to find extra cash for the down payment or other paperwork. Why allow yourself this type of stress?
Gather the paperwork before you put down an offer to purchase. Give it to your mortgage broker so he can have a look at it to ensure it will meet the lenders expectations.
The following is what most buyers can expect to have to provide to the lender to purchase a home:
- Job letter – It will need to show:
- the day you started working there,
- the contact information for your HR department;
- Current pay stub – a paystub from the last month that shows your gross salary, deductions and net salary will be fine;
- Void cheque – this is so the lender will know where to withdraw the funds from after funding;
- Three month history of your down payment – bank statements, RRSP statements, GIC statements;
- Real Estate Lawyer contact information – so the lender knows who to send the final paper work to.
This list applies to most people who are purchasing their first home. Other paperwork may be added if you are separated, divorced, business for self, new to Canada, purchasing in a rural area, etc..
Gathering paperwork early reduces stress and gives peace of mind.
Check out the following links for more information on paperwork.
Employed persons – http://jasonpeatz.com/2008/09/income-verification-for-employed-persons/
Self employed persons – http://jasonpeatz.com/2008/06/small-business-proving-income/