Conditions Have Been Met – What Happens Now!!!

Things are moving along, you have placed your offer, your mortgage is all approved, now what. Now is the relax time, enjoy the great thoughts about moving into your home. The paperwork is done for now. The next step is signing the legal mortgage documents at the lawyer. About 7-10 days prior to possession day your lawyer will call you to set an appointment to sign the legal documents which must be done at least 3-4 days prior to possession. They will advise you to bring in a bank draft or certified cheque for the amount of the rest of the down payment and all closing costs which…

READ MORE

Terminology Tuesday – Steps In The Approval Process – Episode 2 – The Purchase

Step 2 in the approval process is the purchase, you now have an accepted offer and ready to get to the approval stage. We have already met with you, assessed your situation, gathered income documents and have most likely pulled a credit report. This gave us some initial information which would have been enough to advise you could go house hunting and given you a range of what you can afford to buy to meet the lender debt ratios used. So, you have an accepted offer, you need to bring that in along with the Listing sheet. We will advise of any updated documents required such as more…

READ MORE

Terminology Tuesday – Series On “The Approval Process Step By Step” – Episode #1

We are beginning a series on The Approval Process- Step By Step – this is Episode #1 explaining the initial appointment. You call into our office to set an appointment to receive a pre-approval, we set that appointment and give you a list of important documentation to bring with you so we can better determine your situation and how we can assist. We will ask you what you are looking to do, is it a first time home purchase, are you selling an existing, are you buying a revenue property and so forth. We need to know who you work for, how long you have been at your…

READ MORE

Terminology Tuesday – What Are My Options And Why Important!!!

There are many words used in the mortgage process of which you need to know what they mean and most important why are they important!!! Mortgages can be complex and sometimes even a bi scary however if you are given the explanations during your mortgage application, commitment and throughout your mortgage life it will take away those fears!!! The length of time for locking in your interest rate and the length of time you choose works for your situation as well. Terms can vary from 6 months to 10 years with each one having a different rate attached to them. Lenders buy their money to lend to you…

READ MORE

What You Need To Know Wednesday -Prepayment Privileges – What They Are and What They are Important

There are many things within a mortgage that give you different options in how you are able to payout your mortgage and one of those is the Prepayment Privilege. When you take a fixed term in your mortgage you are set with a payment based on the amount of your mortgage, the interest rate and the amortization time set. Further to that most lenders will allow you to payout over and above the required principal and interest payment without incurring a payout penalty. Those amounts will be based on a certain percentage of the mortgage amount which is usually in the 15%-20% range depending on the lender and…

READ MORE

The Difference Between A Pre-Approval, APre Qualification and A Commitment – Why It Matters!!!

Wondering whether you need a “mortgage commitment letter”?  Certain terms in the mortgage industry sound alike but are completely different.  For instance, pre-qualification, pre-approval, and mortgage commitment all sound similar.  But these three terms- which describe three different types of letters you can get from a lender- mean three different things. Lenders usually provide one of the three and at different times in the mortgage approval process. Pre-Qualification Letter:   This is the loosest OK from a lender, indication that they may possibly grant you a mortgage. It may come in the form of a letter or a verbal agreement.  The lender most likely talked to you about your income,…

READ MORE

Who Is A First Time Homebuyer!!!

This is a question I get all the time so thought it a good idea to explain.  The term “First Time HomeBuyer” actually does not exist anymore in purchasing a property.  It used to be a few years back that in order to go as low as 5% down payment on a home you could not have owned a property for the past 5 years and the property you are buying had to be your principal residence.  That is no longer the case. The new rules are only that you must be going to live in the property as your home.  You can own as many other properties…

READ MORE

Porting A Mortgage – Is It A Good Idea

There are so many terms that you hear in the mortgage process and some of those are not ones that necessarily come up when you sign your mortgage commitment or even when you sign legal documents. At Advance Mortgage however, we feel it is important for you to know what type of mortgage you are getting and what it allows for throughout the length  of your mortgage term. A port in simple terms means taking the mortgage from one security to another.  This is very important because if you are taking a fixed term mortgage product you are signing a contract that says you are locked into this…

READ MORE

Why Do Lenders Ask For so Much Paper for Approvals?

This is a question we get all the time and I have to say we even ask that ourselves.  Why so much paper is needed for mortgage approvals now? The answer is, there are more than one answers to that question so we will list the ones that make the most sense. Fraud – mortgage fraud including identity theft, documentation hampering, untruths all contribute for the need to supply proof that what you say and do is what you said and did.  Lenders have no other way of knowing unless they see the proof and for now and the foreseeable future this is the way things are going…

READ MORE