Congratulations
Whether you're a First Time Homebuyer, or looking to make a change - I'm here to help you secure financing, and get into your new home!
Buying a house can seem overwhelming at first glance. I get it.
Luckily for you, I've successfully guided hundreds of buyers through their first home purchases and life transitions... and I would love to do the same for you!
Embarking on your first home-buying journey is an exciting adventure, and securing a mortgage pre-approval is the crucial first step. A pre-approval tells you exactly how much you can borrow and strengthens your position as a serious buyer. Here's why it matters:
Clarity & Confidence: Know what you can afford and make informed decisions during your house hunt.
Faster Process: When you find your dream home, you'll be ready to act swiftly.
Strength as a Buyer: Sellers and real estate agents will take your offer more seriously, giving you an edge in competitive markets.
By working together, I’ll ensure that your pre-approval reflects your financial goals and helps us find the best mortgage option for your unique situation.
Let's lay the foundation for your new home – start with your pre-approval today!
The real deal...
Getting pre-approved is simpler than you think!
Here's how it works:
Initial Consultation: We'll start by discussing your financial situation, goals, and any questions you may have.
Gathering information (aka, the application): From our initial meeting, I'll identify the information needed for our review of your finances and give you a direct link where you can start your application.
Financial Review: I will review key information like income, credit score, and existing debts to assess your borrowing capacity.
Pre-Approval Offer: Once we've reviewed everything and ensure you're feeling good about the proposed numbers, you’ll receive a pre-approval letter, giving you a clear budget and advantage as a buyer.
House Hunting with Confidence: Now you’re ready to start looking for your perfect home with the peace of mind that you already have a head start on your financing.
Buying your first home is a thrilling adventure, and while it may seem complex, I’m here to guide you through every step.
Here’s a simple breakdown of what to expect on your home-buying journey:
1
Before you start house hunting, getting pre-approved is crucial. This step helps you understand your budget and shows sellers that you’re serious and financially ready. I’ll help you with the pre-approval process, making it quick and easy.
2
Now comes the fun part—finding your dream home! Whether you’re browsing online listings or visiting homes in person, knowing your pre-approval amount will help you focus on properties within your price range. I’m always here if you need mortgage-related advice during your search.
3
Once you find the perfect home, it’s time to make an offer. This is where having a pre-approval gives you an advantage. Sellers are more likely to accept an offer from a pre-approved buyer, so you’ll be in a strong position to negotiate.
4
After your offer is accepted, we’ll finalize your mortgage approval by sending it to a lender and default insurer (if applicable). I’ll work closely with you to ensure everything is in place—from submitting the necessary paperwork to getting documents to your lawyer, and organizing the final sign-off to complete!
5
Before closing the deal, you’ll likely have other conditions to satisfy. Such as a home inspection to ensure everything is in good condition, doing a water test, etc. Once all conditions are complete and all paperwork is finalized, we move to the closing stage, where the property officially becomes yours!
6
Congratulations—you’re officially a homeowner! Now it’s time to move in and enjoy the home you’ve worked so hard for. And remember, I’m always just a call or email away if you ever need advice on refinancing or anything mortgage-related down the road.
Your questions answered.
Pre-qualification is an initial step that gives you an estimate of how much you might be able to borrow, based on self-reported information.
A pre-approval, on the other hand, is a more thorough process where a broker and/or lender reviews your credit score, financial details, and income, giving you a more accurate loan amount.
Pre-approvals are still never a full guarantee of approval, the home and documents are only approved once an offer is accepted, however it is crucial when you’re ready to make an offer on a home and shows sellers that you're serious, and demonstrate the financial ability to purchase.
A rate held for a mortgage pre-approval is usually valid for 60 to 120 days, depending on the lender. If you don't find a home within that time frame, we can easily renew or extend the pre-approval to ensure you’re still ready to make an offer when you find the right property.
Mortgage default insurance (often referred to as CMHC insurance) is required if your down payment is less than 20% of the home’s purchase price. This insurance protects the lender in case of default, and it allows you to buy a home with a smaller down payment and access the lowest rates.
There are 3 providers of default insurance in Canada. CMHC, Sagen, and Canada Guaranty.
The minimum down payment depends on the price of the home. For homes under $500,000, you’ll need at least 5% of the purchase price. For homes between $500,000 and $999,999, you’ll need a minimum 5% on the first $500,000 and 10% on the remaining balance. I can help you figure out what works best for your situation!
Most people like the idea of closing on their new purchase before needing to move out from their existing home, or before it's even being sold.
If you don't plan to have your home sold before buying: There are a number of strategies for this, highly dependent on your unique situation such as access to funds, debt ratio, credit, etc.
If you do plan to have your home sold before buying: The most common way to this is through a Bridge loan.
The one consistent piece of advice regardless of strategy is to start the financial planning piece early.
I can help you make a plan for how to best schedule your transactions for a smooth move.
The better question might be, "how fast can you get me all the required information for your application?" haha!
Ok all jokes aside, the process varies client to client, but the timeline for mortgage approvals typically it takes about 5 to 10 business days from when you submit your full application.
The key is to provide all the necessary documentation upfront to avoid delays. I’ll work closely with you to ensure a smooth and efficient process.
Closing costs typically range from 1.5% to 4% of the purchase price of your home and include things like legal fees, home inspection, title insurance, and land transfer taxes. For the purposes of verification, lenders require us to confirm 1.5% is available for legal fees however there can be other costs involved depending on your unique situation and decisions around your homebuying experience (e.g hiring movers or not, etc. )
To increase your chances of mortgage approval, ensure your credit score is strong, save for a larger down payment, and reduce any existing debts.
I can help you review your financial situation and provide strategies to strengthen your application no matter the starting point.
The precise documents required vary from person to person based on unique circumstance, however here are a few of the most common requirements:
Government photo ID
Recent paystub
Most recent two years' T4s
Letter of employment
Tax returns (if self-employed)
Most recent 3 months of bank/investment statements for your down payment
Mortgage statement*
Property tax statement*
*If you already own a home
1) Changing your financial situation after pre-approval (increased debt, switching jobs, spending your down payment etc.)
2) Transferring money across multiple accounts. All funds need to be verified over 90 days, including any large or unusual deposits. Simplify your life (and your broker's) by choosing 1-2 accounts to accumulate your down payment in and keep every record proving the source of large deposits.
3) Not having monthly bank statements. Yes, this sounds exactly as ridiculous of an issue as it is when it comes up at the last minute. Save yourself anxiety, and make sure the accounts you're accumulating funds in produces monthly statements that you can easily access. You will need them.
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