The Mortgage Process (when purchasing a home)
- A Mortgage Specialist will discuss your mortgage financing needs and prepare and send your mortgage application to the lenders that best suit your needs.
- The lenders will review the application and send their offers back to your Mortgage Specialist who will in turn select the best offer. That lender will then issue a “Mortgage Commitment” which must be accepted and signed by the borrower.
- A Mortgage Commitment will usually have a number of conditions and documentation requirements and your Mortgage Specialist will prepare this documentation for you and send it to the lender on your behalf. This documentation usually includes confirmation of your employment and income, verification of your down-payment, appraisal of the property to confirm value (your mortgage specialist will arrange this on your behalf as well), and review of your credit history.
- Next, a Solicitor will work on your behalf to review
- The offer to purchase,
- Copies of the Mortgage Commitment,
- Any Potential encumbrances, liens, easements, restrictions, encroachments, or other claims registered on title.
- Contact the lending institution and arrange transfer of the funds
- Contact the utilities and property tax department to determine amounts, if any, required for closing the mortgage
- You then meet with the Solicitor shortly before the closing date to review and sign closing documents (mortgages, deeds, declarations, undertakings etc.).
- On the closing day, your Solicitor and the vendors’ Solicitor exchange documents, funds, keys and register all documents on title.