There are typically 6 steps involved with the Mortgage Approval Process when buying a home. By following this guide list, you can’t go wrong as you move along the process of getting approved.

1 . Getting a good Mortgage Education. Education is a great first step, and is the best thing you can do to save money and gain confidence when shopping for a mortgage. Education will move you beyond the point of just accepting whatever ‘advice’ comes your way, to a place of Mortgage Empowerment, where you are able to decide among your best options with confidence. A good Mortgage Broker will be able to expand on things you’ve read, and provide guidance in areas that you’re not too sure about.

2. Pre-Approval. It’s a good idea to secure a formal pre-approval before house hunting. But not just any pre-approval… There are some pretty big differences in the quality of pre-approvals out there. Many pre-approvals are very ‘light’ and don’t ask enough questions or gather documents upfront. So these are not too good to rely on before house hunting. Instead, before considering placing an offer, it’s best to have a thorough pre-approval where your mortgage application is complete and most of the required documents have been reviewed by your mortgage provider. After a phone call or online application, within a few hours, your broker should be able to give you some fundamental information such as affordability and monthly payments. But it’s also important to validate this information with required lender documents.

The main documents needed here often include:
• A recent pay stub.
• A letter of employment.
• Proof of down payment in a bank account (account statement).
Doing this work upfront will help to ensure a faster and smoother process for when you find that perfect place.
Your broker should be able to provide a variety of rate options and scenarios for you to compare at this point. You should be able to visualize these options, and determine strategies that range from becoming mortgage free sooner to issues such as ‘what happens in case of an emergency’?

3. House Hunting. Your pre-approval can reserve and protect your rate for up to 120 days as you search for that perfect place. After the 120 days are up, your Broker can extend the rate or pre-approve you again based on the lowest market rates at that time.

4. Make an Offer to Purchase. Once you’ve found the right place, make an offer to purchase that contains a Condition of Financing. The Financing Condition will typically last at least 5 business days and gives you time to turn the pre-approval into a FULL approval. The full approval will generate a Mortgage Commitment for your inspection and eventual signing. The Broker will submit your employment information and any other needed documents to the lender to ensure that there will be no surprises after the financing condition is waived.

5. Waive Conditions and ‘Go Firm’. Once the Financing and other purchase conditions (such as a home inspection) are waived you are now firm on the property and are legally obligated to fund the purchase.

6. Closing at Lawyers Office. You’ve spent quite a bit of time and energy with this whole process. But it’s worth it, and you’re excited! A day or two before close, it’s the lawyer’s job to pull everything together and finalize the transaction. The lawyer handles the mortgage money, accepting it from your mortgage lender and transferring it to the sellers’ lawyer, will register title insurance to protect the legal title of your property, and will register the deed of the property with the City in your ownership.