The Process

By: Meridian Financial Services  09-12-2011
Keywords: Mortgage

A short application will be taken which includes enough information to do a credit check and submit your application to the appropriate lenders. Only one credit check is necessary. Once the check is done initially, it can be sent to as many lenders as desired, so there is no need to worry about having your credit "score" affected.

Your Broker will answer any questions you may have and explain different mortgage lenders, options, payments and conditions, the benefits of different terms, e.g. - variable rate mortgages vs. long term, etc., general economic factors, history of mortgage rates in Canada, etc. All Meridian Mortgage Brokers are full time experienced professionals, who pride themselves on their extensive knowledge of the Canadian mortgage market.

Your Broker will then submit your application to the lenders electronically and should have your written pre-approvals back very quickly, usually within a 24 hour period.

Once you are pre-approved, your rate will be locked in for a 90 to 130 day period. If rates go up, you will be protected for the remainder of your approval. If rates go down, your Broker will re-submit your file to the lender for the lower rate.

*Keep in mind that throughout this process you are not obligated to either the lender or the Mortgage Broker, just simply pre-approved and protected against any rate increase.

If you are purchasing a new home and have an accepted offer, you would then contact your Broker, who will process your offer and get you fully approved. The lender will then send a commitment to your Broker and you would sign your commitment which would outline all Terms and Conditions, Prepayment Options, etc.

Once your commitment is signed and sent back to the lender, the lender will then prepare "Mortgage Instructions". These are the actual mortgage documents, which will be registered on the title of your home. These are sent directly to the lawyer/notary who will be looking after your purchase. In most cases, you will also bring a void cheque to the lawyer/notary, which your lender will use to auto debit your payments from your existing bank. You do not have to change banks or move your accounts. Your void cheque is attached to your signed documentation and forwarded accordingly by your lawyer/notary.

Once you have moved into your new home, the lender will send you a "Welcome Package". This welcome package will have contact names and phone numbers, in case you have questions about your mortgage, etc. although at this stage Meridian has connected you directly to your lender, your Broker will still be available should you have questions or need assistance in future dealings with your lender.

Overall, Mortgage Brokerage has made home buying much easier. Your Meridian Mortgage Broker is independent of any one lender and can provide knowledgeable adivce from a neutral perspective.

Keywords: Mortgage

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Some of the lending guidelines do have some flexibility, so don't assume if you aren't a perfect fit for the guidelines that you won't qualify for a mortgage. One of the most important roles a broker will play in your approval process is assuring all of your documentation is in order. The amount of information the lenders require can be based on amount of downpayment as well.