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The Mortgage Process

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Outlines the process for obtaining a mortgage from start to finish....

Outlines the process for obtaining a mortgage from start to finish....

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  • 1. The Mortgage Process Sherwin Dziwenka Mortgage Consultant
  • 2. 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
  • 3. Mortgage Pre-Approval • Protects your negotiated rate up to 120 days. • Determines the price range of your new home. • Makes the purchase process smoother.
  • 4. 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
  • 5. 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.
  • 6. Preparing an Offer Your 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.
  • 7. 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
  • 8. 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.
  • 9. 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.
  • 10. Mortgage Application Mortgage 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
  • 11. Mortgage Application Mortgage Options Terms & Payment Options • Terms from 6 months to 18 years, amortizations up to 30 years. • Flexible payment options • Weekly • Bi-weekly • Monthly
  • 12. Mortgage Application Mortgage 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.
  • 13. 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
  • 14. What a Lender Wants: Personal Info • Age, marital status, birthdates, dependents Details of Employment • Proof of Income • T-4’s • Notice of Assessments • Letter from employer • Other sources of income • Pensions • Rental income • Investment income
  • 15. 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)
  • 16. 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
  • 17. 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
  • 18. Subject Removal & Legal Process Once all conditions have been met and the subjects removed the lender will forward all documents to the lawyers where the mortgage and title transfers are signed
  • 19. 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.
  • 20. An Invis Mortgage Consultant has 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.
  • 21. 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.
  • 22. 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.
  • 23. Fees • 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.
  • 24. Whether You Are: • • • • • Buying a home? Purchasing an investment property? Restructuring debt? Renovating? Renewing your current mortgage? Contact: Sherwin Dziwenka at 403-828-7162
  • 25. Sherwin Dziwenka Mortgage Consultant with Invis Phone: (403) 828-7162 Fax: (888) 966-0607 Email: sherwin@invis.ca Website: www.sherwinmortgage.ca