The Mortgage Process

My goal is to build client relationships for life; i believe that this can only be achieved by providing the very best service from start to finish, and beyond. I am sure like most people you do not enjoy filling out forms; by using a mortgage broker you avoid going from bank to bank filling out the same type of application form over and over again. All i need is one application from you and then with the help of the dedicated Origin operations centre, we will handle all the paperwork for you, from applications to multiple lenders all the way through to closing; and all we will need from you is just a few signatures.

Whatever type of mortgage you need it will likely be one of the biggest financial commitments you ever make; it is therefore a good idea to understand how the mortgage process works. The process can be summarized in six simple stages:

Stage 1: Application

The first stage involves gathering information about you and your mortgage needs. Some mortgage brokers will complete the whole mortgage process by phone and you will never actually meet you - I am not like most mortgage brokers. I strongly believe in the personal approach, so after an initial consultation by phone, I will meet with you face to face to discuss your application and the options available to you.

The application itself is straight forward and involves collecting information about your current financial situation, credit history and risk profile. We will then work together to determine your mortgage needs so that your future home ownership goals can be realized. You will be required to provide necessary documentation for sending to prospective lenders. Throughout the entire application process my goal is to help educate you on what you can expect and what your choices are.

Stage 2: Qualifying

The next stage is getting you qualified for the mortgage. This involves putting together a package containing your information and sending it to a chosen lender for approval. The way this information is presented will often determine whether or not you are approved and at what interest rate. It is at this stage that Origin's operations centre staff excel. The high volume of applications being processed by the operations centre each week, ensures that regular contact is kept with each lender's underwriting staff; this has allowed great working relationships to be formed and a thorough understanding of what is required to secure you the best rate and terms possible.

Information is electronically sent directly to an underwriter who will usually provide an answer in 48 hours or less. Some lenders provide quicker approvals but others may take a bit longer, it all depends on how much business they are receiving at the time; if they are busy it often means they are currently offering a popular product such as a special rate. If the desired answer is not received, then further negotiation on your behalf will occur until we are satisfied that the best terms possible have been secured. Negotiation with several lenders may occur in order to maximize the discount offered on your interest rate.

Stage 3: Approval

Once your application has been approved i will contact you and go over the details of your approval. At this stage nothing is set in stone, it is possible to change the rate and term, payment amount or frequency, amortization, etc. Once you are satisfied with the terms of the approval we will send you a copy of the commitment letter to sign. This will allow us to hold the interest rate at which you were approved for up to 120 days.

By getting an approval you will at the very least have peace of mind that you have your financing in order. Even if interest rates go up, your rate is guaranteed; but if interest rates go down, you will automatically be re-approved at the new lower rate!

Stage 4: Verification

The approval may be subject to certain conditions such as obtaining an appraisal of the property you intend to purchase, or verification of details provided in the application such as proof of funds available for the down payment. A list of any conditions stated by the lender will be sent to you, stating exactly what you need to provide in order to finalize the approval.

If your loan is a high-ratio mortgage (less than 20% down-payment) then this is the stage when we will get you approved for mortgage default insurance with either the CMHC or Genworth. These are the companies who provide insurance to the lender against loss. Almost all lenders require a certificate of approval from one of these two companies before they will finalize your loan.

Stage 5: Purchase

If the financing is for the purchase of a new property and you have not already made an offer, then now is the time to start looking around for your new home. After you have found the home of your dreams you will need to submit an offer to purchase. After the offer has been accepted and signed, i will obtain a copy from your Realtor and ensure that your new mortgage loan matches the exact details of your purchase down to the penny.

By working directly with your Realtor i can make sure the process goes smoothly. If you need a Realtor you can Contact Me and i will be more than happy to give you the details of one suited to the area and property type that you are looking for.

Stage 6: Closing

The only thing left to do after you have had your offer accepted and your financing is in place, is to register the transaction legally. For this you will require a lawyer or notary. If you already have a lawyer or notary i will gather their contact details from you; if you do not have one you can Contact Me and i will be glad to refer you to one.

All the documentation will be forwarded directly to your lawyer and a meeting arranged. You will make one final trip to the lawyer's office to confirm all the details are correct and to provide a legal signature. The lawyer will receive the funds from your lender and disburse them to the seller or builder of your new home.

That's it, your financing is complete and soon you will get to move into your new home!

If you have any questions about the process you can Contact Me and i will be happy to assist you.