The loan process, when adequately prepared for, can be fairly simple. For regular mortgages, we do not charge a consulting fee, nor for a credit analysis. Here is the process broken down into simple steps:
Step One: Speak to us to find out what documents you will need to support your application. These will differ with each individual and is determined by your type of employment, credit and a number of factors. This is the single most important step in ensuring a smooth and easy transaction. Our Minimum Submission Package Guide will be provided to you.
Step Two: Apply. Our online application takes less than 5 minutes to complete. A credit consent form will also be included where we will complete your credit analysis and together with your application, we can compute your maximum borrowing power and purchasing precisely and give you quality advice.
Step 3: Set up a home search with your realtor. If you are not currently working with a realtor, we can recommend one or more for you. We are located at Century 21 Bamber Realty, one of Canada’s top real estate offices with over 180 agents. Using a realtor to purchase a home will not cost you a cent since they are traditionally paid by the sellers and an experienced realtor will negotiate for you and ensure that all paperwork is properly done and ensure a smooth deal.
Step 4: Make an offer to purchase. At this time, once your offer is accepted, you will be in the contract’s “condition period”. The condition period here specifically refers to your “condition of financing”, although there are typically more than one condition, such as a home inspection or a condo document review and many other possibilities. The condition of financing allows for a specific amount of time for us to gain your optimal mortgage solution, usually 7-10 business days. Some approvals are simpler than others and may only take a few hours and more complicated approvals may take a few days.
Step 5: Satisfy the loan conditions. Once your conditional approval is gained, we will summarize a list of the required supporting documents that are needed for your final approval. Since the lion’s share of these documents will have been collected proactively in Step One, there should be very little left to do. However, upon reviewing this first group of documents, lenders will often request one or two more documents and we will do what is possible to minimize this back and forth. Once all your loan conditions are met, you can waive your financing condition and proceed. When all your conditions are removed, you have a firm contractual agreement for purchase.
Step 6: Funding your mortgage. At least 30 days prior to your mortgage funding date (aka “closing date” or “possession date”) the mortgage lender will send your real estate lawyer the mortgage instructions. Your lawyer will contact you, schedule your appointment and provide you with a list of what they will need which usually consists of 2 pieces of photo ID; a certified cheque for the balance of your downpayment; proof of fire insurance (not for condos). If you do
not have an experienced real estate lawyer, I can provide you with a trusted referral to one or more.
There are many more little details, however we handle those for you and are available to provide you with information 7 days a week. Thank you for choosing RS Mortgage Solutions and have fun with your home purchase!