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cannot be overemphasized - it is so important to arrange for a pre-approved
mortgage prior to commencing your housing search. This serves two
purposes: You know how much you can afford and it avoids delays
in finalizing your financing when you find the right house to buy.
The best place to start is with your own bank or financial institution.
There are other options available to you:
- Bank,
Trust Company, Financial Institution
- You arrange a meeting with those lenders individually. If
you have a trusted relationship with your own financial advisor,
then you should see them first. *Some institutions have
Mortgage Specialists who are mobile mortgage sales people and
will arrange a convenient time and place to meet you. They tend
to work 7 days a week and take day or evening appointments to
suit your time schedule. There is usually no additional cost
to you.
-
Mortgage Brokers
- Like insurance brokers, mortgage brokers shop the market and
arrange the most favorable rate and terms for you. Like Mortgage
Specialists, there is usually no application fee or set up cost
for this service.
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Assuming an Existing Mortgage
- Some purchasers prefer to assume an existing mortgage on the
property. This is only done when the rate of interest is lower
than that which they can obtain out in the market or when the
terms are more favorable than they can obtain out in the market.
In a low interest rate environment, existing mortgages are very
rarely assumed. *Most financial institutions must approve
you before they will allow the mortgage to be assumed
After
you have been pre-approved for a mortgage, you can confidently look
for houses within your price range. At the point when you have found
the home that fits your requirements that you wish to buy, the following
is a list of other steps you need to take:
- Advise
your lender that you have purchased a home (usually conditional
upon mortgage financing). Provide them with a copy of your offer
to purchase. Michell can handle that for you and also provide
them with a copy of the listing from the MLS system if they
require it. Your lender will need to be informed about how many
days you have to arrange mortgage financing based on the financing
condition in your offer.
-
Ask your lender if there is any other information you may need
to get to them. When you were pre-approved, you would have provided
the bulk of the information at that time.
-
When everything has been approved, you will receive written
confirmation of the approval. Written confirmation will take
the form of an approval certificate, or approval letter. A copy
of this can be faxed to Michell Gunn's office.
- Michell's
office will make sure the seller's agent receives a copy of
your loan approval.
-
Michell is there for you on an ongoing basis to answer any of
your questions on the process and can competently answer questions
on mortgage financing.
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