Buying a Home, the Basics

How many times have you asked this; "If there was only some visual representation of what I need to do as someone who wishes to buy a new home?"

Well, that's what Kiss Mortgages is here for, to Keep It Simple Simple. Feast your peepers on this.  

While it's meant for your basic mortgage broker 101 course, I believe it helps to take away the mystery of what a mortgage broker does and why. After all, we may understand why we need a T1 General (Canada represent) or two years NOAs but do you? Do you even know what that means? Let me be your tour guide. Follow me down the rabbit hole...

1) Initiate Client Contact - Whatever the marketing pros want to call it - 'touches' 'collisions' 'interactions' all it is really is someone saying 'I might need help one day and I will remember you first.'



2) Client signs Sales Contract - Simple enough. Client is past looking and wanting to purchase. They remember me from #1 and inform me they want a mortgage.

3) Broker Receives Sales Contract from Realtor - I call the Realtor and request the particular details of the property you wish to purchase. This would include measurements, legal description, purchase offer

4) Gathering Supporting Documents for Lender Submission - I will contact you to let you know what is needed to support your application to a lender, which is explained in #5

5) Including but not limited to job letters, NOAs, Gift Letters, title, bank statements, appraisal (if requested) - These documents verify the income you claim you make and will go towards mortgage payments. Job letters are from your employer, stating how much you make and that you are actually employed. NOA is 'notice of assessment', the receipt you get from the tax department verifying you have done your taxes the past year. Gift letters are for $ going towards your down payment that you may receive from a family member. Title may be in case you currently own a house. Bank statements are used to verify income or down payment (there must be at least a 3 month history of you in possession of down payment funds, a precaution put in place to avoid money laundering). An appraisal may be requested by lenders if the deal is either private. a rental unit or 'other'. Appraisals are at the discretion of the lender loaning you the money and I don't have a choice to refuse it if they request.

6) Application submitted to lender for approval - 'Nuff said. Give this anywhere from 10-14 business days. During this time, the underwriter for the lender will be fact-checking your application. And it may be hard to believe, your file won't be the only one on their desk.

7) Application Accepted, legalities commmence, home insurance needed - Yay! Major hurdle overcome. You can remove that 'subject to financing' clause in sales contract and order that home inspection. Now is a good time to start inquiring into home insurance and procuring a lawyer, solicitor, notary public whatever they want to call themselves. I will sit with you and go over the mortgage commitment letter, getting your signature stating that you are accepting the mortgage and its terms for what they are. Plan on 30 minutes to an hour, depending if you have bought a house before. I also usually will ask if you wish to request mortgage insurance or waive it.

8) Loan Application is sent to lawyer/notary public - I will arrange for the lender to send the mortgage papers to your chosen representative. They will then usually call you to arrange a meeting.

9) Client meets with lawyer, signs papers - Hey, look! You are here already. Budget at least an hour of your time with the lawyer; they will go over each page with you and it can be pretty overwhelming. Come prepared with questions and identification.

10) Mortgage Insurance protection offered/explained - I actually prefer to do this at the same time as #7

11) New House! - Believe it or not, buying the house is the easy part. Next will come the realization that you now own a home that you can make into your very own reflection of your personal tastes without the worry of what the landlord or your parents will think of that giant Pulp Fiction mural on your living room wall. Or if you have a house with a yard, start looking for lawn mowers, rakes, garden hoses and shovels...

On the plus side, I have plenty of time to write mortgage blogs...

Next blog ; how to not market yourself by maintaining a pretty anonymous blog with no real links to your business.