The following sections provide an overview of the mortgage process.
This is perhaps the most important part of the mortgage process. During this process, your Havill’s representative will ask for information regarding your income, assets and liabilities. Once this information has been collected, we will recommend a loan program that best fits your financial needs. At this time, you should also consider the amount of down payment you will be making towards your new home, and where it will come from (savings, RRSPs, gift, etc).
Don’t know how you will come up with your down payment? Speak to one of our professional Home Consultant about down payment options – we may have some ideas that can get you into a new home sooner than you thought!
Once you have signed an agreement to purchase your new home, we will introduce you to an experience lender who will want to verify certain information. You should then prepare the following documents:
- Most recent paycheck stubs for each borrower, covering the most recent thirty-day period.
- Two months of the most current and consecutive banks, investment, and/or retirement statements for all your accounts.
- If self-employed you will need to bring in the last two years’ tax returns and copies of income statements. You will also need a year-to-date profit & loss statement.
A credit report will be obtained as part of the loan application process. The credit report will show your payment history, credit limits, monthly payments and current balances.
If you would like to request a copy of your current credit report in advance, there are two major credit reporting companies: Equifax and Trans Union. Obtaining your credit report is as easy as calling and requesting one. Once you receive the report, it’s important to verify its accuracy. Double check your credit history, your current credit limits, and any past due accounts. It’s a good idea to follow up with any creditors showing past due accounts, which might affect your ability to be approved for financing. If there are any incorrect items, be sure to have the creditor remove them from your report.
To acquire a copy of your credit report, contact the reporting companies at the numbers listed below or order credit reports online via the reporting companies’ websites.
CREDIT REPORTING COMPANIES
Equifax (www.equifax.ca) or 1 800 465 7166
Trans Union (www.transunion.ca) or 1-877-713-3393
A loan decision will be issued based on four factors – income, assets, credit record, and property value. Once the local lender has approved your mortgage application, they will send your purchase agreement and mortgage application to an Underwriter (such as CMHC – Canadian Mortgage & Housing Corporation) who will review the information and make the final loan granting decision. Additional information or documentation may be requested at this time. This is the final step for your new mortgage approval process.
Interest rates can change at any time and without notice. Rates generally change a little bit each week, sometimes better – sometimes worse. On occasion, rates can even change several times a day. If you know that the financial markets are going through a particularly unstable period, you may want to check with a Havill’s representative to ask if you qualify for an interest rate guarantee or to “lock” the interest rate for you, during your application process. This can potentially save you a lot of money on your monthly mortgage payment.
We will coordinate a closing date and time with you, to reflect your family’s scheduling needs. On your closing day, you will meet with the lender to sign your final mortgage papers. Once all documentation has been completed, your lender will issue your funds, which you will bring to Havill’s. Once the final home payment has been received, we will provide you with all of your home’s official documentation, and you will be handed the keys!
