What's the mortgage process?
STEP 1: Pre-Approval
Before you start your housing search, it's a smart idea to get a pre-approval to determine what your budget is for your next home. Keep in mind that mortgage applications are evaluated on two things: the applicant and the property. This step analyzes the applicant only on attributes like income amount, employment type, debt level, and credit score.
STEP 2: House Search
Once you know what your budget is, it's time to start your housing search. A certified residential real estate agent can help you through this process.
STEP 3: Property Application
After you've selected your home and a purchase agreement has been completed, you will complete the other half of your mortgage application: the property. At this stage, the lender will evaluate things like the reasonability of the purchase price of the property, it's location, and proposed use.
STEP 4: Conditional Approval
Assuming everything is acceptable with your chosen home, you will receive a conditional approval. This means that you will receive the full amount of home financing you're applied for pending the conditions outlined are fulfilled. This generally includes the "proof" of items you've previously claimed in your application. Examples include an employment letter, a recent pay stub and notice of assessments to show income, proof of property taxes, the MLS listing.
As your mortgage agent, I will work closely with you to prepare the documentation required and will send it to the lender on your behalf.
STEP 5: Complete Approval
Once you've fulfilled the conditions outlined by the lender and they have satisfied the lender's requirements, you will receive notice of a final approval. The documents will then be sent to your lawyer who will conduct a title search on the property and finalize all documentation for closing.