January 25, 2019

What to expect during the mortgage process? Part 1

What to expect during the mortgage process? Part 1

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A mortgage is a big transaction that involves a substantial amount of money, which is why we have developed this 5-part series to help you ease your mind.

Part 1: the application

You are ready to take the first step into home ownership or, you’re ready to refinance. This is going to help you get through the process more easily.

What to expect during the mortgage process? Part 1

During the application process, you’ll be asked for information about:

  • Your income
  • The property being mortgaged
  • How you will pay for the down payment (if you’re buying a home)

Your broker will pull a credit report and share it with the lender, so that they have details on any outstanding debts as well as your credit score.

If you have had a bankruptcy or consumer proposal, you will need to supply all supporting documents before being issued a mortgage commitment.

Bankruptcy documents:

  • Discharge statement
  • List of assets/liabilities
  • Dividend sheet
  • Statement of affairs

Consumer proposal documents:

  • Discharge statement or certificate of full performance
  • List of assets/liabilities
  • Statement of affairs

If your application falls within the lender’s guidelines, they will then send your broker a commitment that will outline the details of your mortgage.

  • Conditions
  • Interest rate
  • Term
  • Amortization

Ask your broker to go over these details with you so you understand them.