What To Expect During the Mortgage Application Process

02 May What To Expect During the Mortgage Application Process

When you are about to proceed with the mortgage application process, it is helpful to know what the road might look like. As professional mortgage brokers, it’s our job to help future Kelowna home owners to navigate the process. Here are some things you need to know.

The initial information meeting with the lender/broker will entail collecting your personal information including:

• Date of Birth
• SIN or Social Insurance Number
• Drivers License

Additional important information to provide includes:

• Employment Information (3 years of history)
• Address (3 years of history)
• Information on source of down payment
• 90 Day Banking History
• Documents on additional property ownership including current mortgage balance, strata and property tax information if applicable.

This personal information is collected and uploaded to be shared with the lender of choice in order to determine your eligibility. Having the above documentation with you will help us maximize our appointment and minimize the chances of delays due to missing information.

Example of additional information requested:

Banking: The lender will require a source of the funds if you have deposits to your bank account that are equal to or greater than 2% or $2,500 of the mortgage amount. IF these funds resulted as a transfer from a different bank account, the lender will request a 90 day history from the date of transfer for that account. Conversely, the lender will request a copy of the sale invoice if the deposit was based on the sale of personal property.

Mortgage Commitment

After a lender decides to offer you a mortgage, an official mortgage commitment will be sent to you to be reviewed and signed. In order to formally confirm you accept the terms provided, the lender requires a signed copy of the mortgage commitment in order to proceed. The mortgage commitment will outline and identify any extra information the lender may require.

Down Payment

When it comes to your down payment, it is highly recommended to leave your banking and investment information as is where is until financing is finished. We strongly advise not consolidating any accounts until after you are approved and your financing is complete.

Appraisal

The insurer or lender may request a property appraisal. This may still be a requirement even for high ratio insured mortgages. Typically, a list of approved appraisers is provided.

The appraisal is ordered if required at the moment of commitment acceptance by the borrower. It may take up to 5 days from the date of ordering the appraisal to receiving the finished appraisal paperwork. After the lender has received the requested documentation, it will be forwarded to their internal compliance department for review. This step is normally completed 24 hours after being received. On occasion, the lenders compliance department may request additional information at this stage.

Requests for Additional Information

It is important to note that lenders may request additional information up to the date of funding. Therefore, the lenders are entitled to ask for extra information up until the ownership date.

Registering Your Mortgage

After all of the conditions have been successfully met, instructions for the mortgage will be sent directly to the Solicitor for registration purposes. These instructions are submitted directly from the lender to the Solicitor.

Meeting With Your Lawyer

You will meet with your lawyer to finalize your mortgage. They will require the following items from you:

• Copy of your identification
• Confirmation of your employment status and title
• Payment of funds for title insurance if applicable
• Payment of the property purchase transfer tax if applicable
• Payment of the municipal property tax reimbursement if applicable
• Payment of their lawyer fees
• Void cheque and down payment