Mortgage Approval Process


1. Get a Mortgage Pre-Approval
The first step is to have your financial situation to determine how much they are willing to lend you based on your situation.  You may be required to provide your employment history, tax records and SSN, so that they can conduct a credit check. Once pre-approved you may be able to lock into a mortgage rate .

2. House Hunting

Start by finding a Realtor to represent your interests and help you to locate a home. Most Agents will help to keep you informed as soon as property of interest is listed.  In a Sellers Market this can prove very valuable as time is often of the essence, and you don't want to miss out. 

3. Accepted Offer & Loan Application

Your Realtor will help you negotiate the terms of an agreement and once you have a signed, accepted agreement you will be required to submit it to the lender, along with a copy of the property listing as part of the loan application.
If you are getting a mortgage you should include a condition of finance in the offer to ensure that the lender is satisfied with the terms of your negotiation and the property itself. 

4. Mortgage Processing & Appraisal

The loan processor will gather all the required information needed for the loan, including a copy of the accepted offer. Often an appraisal of the property is required in order for the lending institution to ensure that the home is worth what you are willing to pay.  You may be required to pay for an independent appraiser to conduct this review of the home.  When an appraisal is ordered it can take up to a few days to get the results of the appraisal back.
NOTE: What happens if the appraisal doesn't meet the value for which you agreed to pay?  
If your appraisal comes in short you may be expected to make up the difference in your deposit.  This can be difficult for some to accomplish, and this is why you should not remove your financing condition until these requires have been established.

5. Mortgage Underwriting

An underwriter will independently analyze the loan file to determine if it should be approved or denied.  

6. Mortgage Approval & Offer Letter 

Once the underwriter has issued a final approval you will be presented with an offer letter.

7. Closing

The day that you are to get your new home, your mortgage is placed on the property.  This process is done between your lending institution and your lawyer. 

Getting a mortgage can be an overwhelming process, but with a qualified and competent Loan Processor and Realtor you can be assured that their experience will help guide you through the process with ease. 
I hope that this Blog has been helpful and encourage you to contact me if you are looking to buy or sell in Grey Bruce.