The Mortgage Process
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Transcript of The Mortgage Process
![Page 1: The Mortgage Process](https://reader035.fdocuments.net/reader035/viewer/2022062703/554df23db4c905ee578b515b/html5/thumbnails/1.jpg)
The Mortgage Process
2011Robert Lumb
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The Mortgage Process - Simplified
Step 1. – Mortgage Pre-Approval
Step 2. – Shopping for your home
Step 3. – Mortgage Application
Step 4. – Subject Removal
Step 5. – Legal Process
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Mortgage Pre-Approval
• Protects your negotiated rate up to 120 days.
• Determines the price range of your new home.
• Makes the purchase process smoother.
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Qualifying• Must have at least 5% down of purchase price - a limited number
of programs still offer 100% financing.
• First time home buyers may be eligible to use their RRSP’s for a down payment.
• Mortgage Payment + taxes + heating costs* < 32% of gross monthly income.
• Monthly debt including Mortgage payment < 42% of gross monthly income.
• You must be able to pay closing costs of at least 1.5% of purchase price.
• Credit history• Lenders will obtain a credit report which identifies your overall credit
standing
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Shopping for Your New Home
With your mortgage amount Pre-Approved, you and your realtor are able to shop
for the home that best suits your needs.
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Preparing an OfferYour Offer or Agreement Will Include:Basic details
• Your legal name.• Name of vendor.• Legal and civic address of property.• Purchase price• Conditions
It is recommended using a qualified Realtor and/or seeking the advice of a
lawyer before finalizing.
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Mortgage Application
An Invis Mortgage Consultant will help you:
• understand your mortgage options
• identify documents required for speedy application approval, ie: employment and down payment verification, survey certificate and appraisals
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Mortgage Application Mortgage Options
Open Mortgage
• Repay the loan without penalty.
• Interest rates can be higher.
• This may be a good choice if a client is planning on selling their home in the near future.
• Lenders will usually allow conversion to a closed mortgage at any time.
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Mortgage Application Mortgage Options
Closed Mortgage
• Offers terms from 1-10 years fixed rates
• There are often penalties or restrictive conditions for prepayments or additional lump sum payments.
• May not be the best choice if you might move before the end of the term.
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Mortgage ApplicationMortgage Options
Variable Rate Mortgage
• Variable/Adjustable interest rate tied to prime
• Generally convertible to a fixed rate mortgage. At times a penalty may be charged
• Most Variable Rate Mortgages are for 3 or 5 year terms
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Mortgage ApplicationMortgage Options
Terms & Payment Options
• Terms from 6 months to 18 years, amortizations up to 35 years. Some lenders offer up to 40 year amortizations on conventional financing up to 80%.
• Flexible payment options• Weekly• Bi-weekly• Monthly
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Mortgage ApplicationMortgage Options
Other Options
• Bruised credit? There are options for you.
• Financing through “B” lenders with varying mortgage programs.
• Private Lenders available for unique situations.
• Up to 100% financing.
• No income verification products.
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Associated Costs
• Some common costs of buying a home:• Appraisal fee• Land transfer tax or PPT• Survey / title insurance• Legal fees• Home inspection• Property taxes• Fire insurance
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What a Lender Wants:Personal Info
• Age, marital status, birthdates, dependentsDetails of Employment
• Proof of Income• T-4’s• Notice of Assessments• Letter from employer
• Other sources of income• Pensions• Rental income• Investment income
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What a Lender Wants:Other Financials
Current banking information• Name of Financial Institution.• Average cash balance of account(s).
Verification of down payment• 3 months of bank statements showing account holder name and
account number.
Consent to complete credit investigation (Invis Client Agreement)
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What a Lender Wants:Assets & Liabilities
Assets• Property• Vehicles• Investment Account
Balances• RRSPs• RESPs
Liabilities• Credit Card Balances• Personal Loans/Vehicle
Leases• Total amount owing &
monthly payment amounts
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What a Lender Wants:Property Details
• A copy of the property listing
• A copy of the Agreement of Purchase & Sale for a resale home
• Appraisal of property
• Plans and cost estimates on a new home
• Condo financial statements, if applicable and strata minutes included AGM
• A certificate for well and septic, if applicable
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Subject Removal & Legal Process
Once all conditions have been met and the subjectsremoved the lender will forward all documents to thelawyers where the mortgage and title transfers aresigned
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Working With an Invis Mortgage Consultant
• We act as liaison between the lender and the borrower.
• At Invis we are independent, which means we offer unbiased advice and have the client’s best interests in mind.
• Our primary role is to determine the financial needs of our client and find the mortgage products that best fulfills their needs.
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An Invis Mortgage Consultanthas your best interest in mind
• We simplify the process of mortgage financing.
• We negotiate with lenders for the best possible products and lowest rates.
• We help you achieve your goals of home ownership.
• We have the experience and the expertise to work on your behalf.
• We know what mortgage products are available in the market.
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About Invis
• Founded in 2000, Invis is one of Canada’s largest mortgage brokerage firms, with offices from coast to coast.
• We leverage our buying power to get the best service and terms for our clients.
• We save clients valuable time and possibly thousands of dollars when it comes to home financing.
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Our Strengths & Specialties
• Provide maximum flexibility in financing choices.
• Provide counseling on credit & qualifications.
• Arrange & coordinate the mortgage closing.
• Assist with purchase, renewal, construction & renovation financing.
• Provide efficient & highly personalized service.
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• For most clients there is no fee for our services – the lender pays for our fees.
• A fee may apply when working with a client with bruised or poor credit history.
Fees
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Whether You Are:
• Buying a home?• Purchasing an investment property?• Restructuring debt?• Renovating?• Renewing your current mortgage?
Contact: XXXX
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xxxxInvis Phone: (403) 555-5555Fax: (403) 555-555Email: [email protected]