Home buyers need to know the basic information on mortgage process and pre-approval. The entire process starts with mortgage pre-approval. This is a significant first step as it would let you determine what value of home you can afford. You will come to know the mortgage payments associated with different purchase prices. This process also gives you a guarantee of a said mortgage rate for a particular period of time. This will enable you protect against any prospective rate increase.
The advantage of seeking pre-approval is that you do not have to be obligated to the mortgage broker or the bank that has given you the mortgage pre-approval. There is not much downside to getting a mortgage pre-approval and absolutely there is no cost involved. Therefore, most homebuyers find mortgage pre-approval highly useful.
Mortgage Approavel Process Explained
Mortgage approval process comprises a few steps. Once you have been able to locate the home you want to purchase, you will have to put the offer in writing. This kind of documentation is known as ‘offer to purchase’. Your real estate agent will be able to help you with this step by putting together the offer. The offer to purchase document should consists of the details including your name, the name of the seller, the address of the property, the purchase price offered, the chattels forming part of property including window coverings, appliances, etc. You must make a mention of all those items that you find in and around the home that are included in the sale.
The closing day refers to the date on which you take possession of the home. Usually, this falls anywhere between 30 and 60 days. From the closing date, the purchaser assumes the responsibility of paying for the expenses towards taxes, repairs, maintenance and utilities. Before this, you need to make a request for the present land survey of the property.
Financing condition refers to the eligibility condition for the homebuyer to qualify for mortgage approval before the sale is finalised. If you are not able to get the financing, then you can walk out from the deal and get back your full deposit. Generally, you must ask for 7 days to get financing.
Home Inspection Stage
During the process of home inspection, the home buyer arranges for a professional to visit the property before finalising the sale. If anything is uncovered during the inspection that you were not informed earlier, you may choose to walk out of the deal and recover the full deposit made. It is also quite natural to make an offer, receive a counter offer and make revisions any number of times as you feel necessary.
Choose the Experts in Mortgage Approval
Mortgage approval is similar to pre-approval. It features all of the particulars of the home you want to buy. Other than the details mentioned in the pre-approval, the mortgage approval will have some additional details including the full address of the property, the right purchase price, closing date, property taxes and others. Once you satisfy the qualifying criteria and once the mortgage provider is satisfied with the property you buy, the mortgage approval process will turn successful. Once you receive this, you can move further to waive your financing condition and finalize the sale.
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