UNDERSTANDING THE PRE-APPROVAL PROCESS

A word from Ramon Bautista – Safebridge Financial

Our commitment to our clients is to provide timely updates from pre approval up to the time that the lender advances the mortgage, and transfers the funds to the lawyer’s trust account.  Once the funds are in the lawyer’s trust account, the lawyer will finish the next steps.

Here are the initial documents required to proceed with a mortgage pre approval:

Online application.  Here is the link,https://ramonbautista.ca/apply.aspx

Down payment confirmation:

  • 3 months account statements for RRSP/TFSA/FHSA/Savings/Chequing/Investment Statements.

Employment and income confirmation:

  • Salaried or hourly positions:

    • 2 years most recent T4s

    • Current pay slip

  • Self Employed

    • 2 years Personal Tax Returns – Complete T1 Return with all schedules

    • 2 years Personal Notice of Assessments

    • If incorporated, additional documents required:

      • 2 years accountant prepared Business Financial Statements

      • Articles of incorporation

After receiving these documents, I am able to provide a mortgage pre approval by the next day.

With a pre-approval, a lender will check your credit and confirm the financial information you provide. Once approved, your lender is essentially offering you a mortgage at a set interest rate for a fixed period of time, typically 4 months.

A mortgage pre-approval is a promise from a lender, but they have to perform a final check. When your offer to purchase is accepted, we resubmit to the lender for final approval. The lender will do one final financial check to see if your finances have changed since the pre-approval was made, and may request additional documents to re-confirm the application details.

Also, the lender will review the property to ensure it meets lender’s guidelines.  An appraisal may be required for underwriting purposes only. The appraisal fee is charged to the borrower.  Appraisal fees can range from $300 – $600, depending on a rush request or property type.

The appraisal report contains specific and confidential information that will assist the lender to make a decision on your mortgage.  Appraisers work on a confidential basis with their clients (known as client-appraiser relationship) and have a fiduciary duty to their client.  For lending purposes, the appraiser’s client is the lending institution.  Hence, the appraisal report is only for lender purposes.

Here is the timeline once we receive the MLS listing and purchase agreement:

  • As mentioned above, when you have found a property and your offer is accepted, we submit the mortgage request for lender review and final approval.  We should receive lender feedback and a mortgage commitment within 1 – 2 business days.

  • Once the mortgage commitment is signed, we will forward it to the lender. The lender will review the documents.The lender may ask for additional documents.  The lender review can take up to 5 business days.

  • Once the mortgage conditions are fulfilled, the lender will send instructions to the real estate lawyer.

  • Once your lawyer receives the lender instructions, they will advise of the next steps.

If you have any further questions about the process and/or if you’d like to get started with a pre-approval, we’ve included Ramon’s contact information below:

Ramon Bautista, AMP
Mortgage Agent L2
Phone: 416.885.1906
Email: rbautista@safebridgefinancial.com
Web: ramonbautista.ca