Mortgage Approval Process 101 - Dominion Lending Centres NasaKasa

Mortgage Approval Process 101

What do people expect when it comes to mortgages? They don’t expect anything because someone who hasn’t gone through the process doesn’t usually think about it! It’s at the stage where you feel you are ready to become a homeowner that you start to wonder, well, what does this process entail? How do I get prepared for this journey? We’re here to help! At Dominion Lending Centres NasaKasa, we recommend preparing for the mortgage process, which will help transition smoothly into homeownership.

First things first, you will want to have the initial discussion with a seasoned professional, someone who knows a thing or two about mortgages. We will review your financial status, the loan amount you are likely to qualify for, and any obstacles you may face prior to borrowing so that you can be successful when the time comes. This stage clarifies your position and provides you with an action plan and the courage to continue forward. You will have to let us know about your income, creditworthiness, and assets at this stage. 

We highly recommend getting pre-approved. Getting pre-approved not only simplifies the real estate search by determining your price range and budget, but it also ensures the interest rate for 90-120 days while you look for the ideal house. Furthermore, any market decreases will immediately modify the rate downward. Another advantage of pre-approval is that it informs the seller that obtaining financing should not be a problem. This is especially useful in competitive marketplaces with a high volume of offers.

In today’s competitive real estate market, acquiring property WITHOUT the assistance of a real estate broker may be pretty challenging. Realtors are crucial in the home-buying process because they have access to houses that never make it onto the MLS website. Most importantly, a realtor understands the intricacies of the home-buying process and can help you from the initial viewing to having your bid approved.

If you don’t have a Realtor and would like access to the MLS database, click on the link: One of the Realtors associated with our company will analyze requirements and provide you with complimentary access to the database with all properties listed for sale in Ontario.

If the offer is accepted, your agent will send your application and the necessary documentation to support the application to the lender. Once the lender has approved the application, they will send a commitment letter that requires the borrower’s signatures. In most cases, the lender will request an appraisal of the property that has been done by an approved appraiser from their list; the borrower is responsible for paying for the assessment, even though it is owned by the lender.

After the lenders’ commitment has been signed, the process will move to the lawyer. The lawyer will review all the documents related to the transaction. They will review the Agreement of Purchase and Sale, mortgage documents, title documents, and transfer documents. The lawyer will also arrange for Title Insurance, ensure that you have a valid title upon closing, ensure that the property taxes are up to date, and exchange legal documents and the keys with the seller’s lawyer.

Here at Dominion Lending Centres NasaKasa, we aim for a smooth closing. We understand that there is quite a bit of work for obtaining a mortgage, so we do our best to make the experience positive and eliminate as much unnecessary work as possible. Make sure to give our office a call at 905-997-7001 for an easy mortgage experience.