New Mortgages Saskatoon, Saskatchewan
Are you a first time homebuyer? Are your looking to upgrade your current home to a new home? Are you looking to purchase an acreage? Are you looking to build a new home?
I am sure that you have many questions.
TOP 5 QUESTIONS
(that I am asked on a regular basis might help you to determine if you are ready for a new mortgage.)
- What is the minimum down payment?
5% of the purchase price on a new home or on your second or third etc. home.
Note: Down payment can be borrowed if you have a good credit score and can debt service the debt of the down payment.
- What does insured and uninsured mean?
If your down payment is between 5% and 19.99% of the purchase price, you will have an insurance premium that will need to be paid (and it is included in your mortgage). The premium varies based on the percentage down. If your down payment is 20% or higher, there will be no insurance premium.
- What does preapproval mean?
A true preapproval is when you have submitted all of your documents and they have been confirmed by the lender up front. Not many lenders will review documents upfront for a true preapproval (but there are a few). This is your best scenario.
Your next best scenario is to have an experienced broker that will review all of the documents up front and due to their experience, will be able to give you reassurance that you will be accepted at the lender level.
- How long does it take to get preapproved?
Typcially you can get a preapproval within 24 to 48 hours of having your documents submitted to your broker
- What determines if I get the best rate?
Applications are risked by the lender based on income, down payment, credit and property.
- Preapproval (online at debmurdoch.com or phone application) – requires credit bureau to be pulled
- Collection of income and down payment documents
- Calculation of 2 scenarios – maximum purchasing power based on income; purchase based on maximum down payment available
- Ratehold (typically the rate can be held for 120 days) If rate should happened to drop in those 120 days, I automatically request the drop.
- Start looking for a new home based on the maximum purchasing power
- When you have an accepted offer, this will start the new mortgage process. MLS and offer to purchase is sent to me to start the process to send to the lender
- Application sent to lender (typical turn around time 24 to 48 hours)
- Receive commitment from lender
- Signing of commitment and verification/approval of all documents
- New mortgage is instructed to the lawyer
- Signing with the lawyer
- Wait for your possession date and move in)
DOCUMENTS REQUIRED (those listed are for every deal; there are additional documents that will be required based on the application)
- Proof of income – letter of employment, current paystub, last 2 years T4s (if self employed, will need a 2 year history of your income – T1 Generals, T4s, NOAs
- Proof of down payment – last 90 days; statement to include your name, account number and financial institution name; unfiltered
- MLS (from realtor)
- OTP (offer to purchase; accepted)
Preapproval – once I have the application and permission to pull your credit bureau, you will have an initial approximation based on the numbers supplied within 24 hours
Scenarios – once the documents have been collected (an I have been able to verify income/down payment) you will have the scenarios via email within 24 hours
Ratehold – is automatic after scenarios are completed and I have had my phone discussion with you.
Live Submission – occurs when you have a firm purchase offer (accepted by the seller). Typically 5 business days are given to complete approval of financing.
Possession – at least 10 days after approval of financing is what the lenders require to instruct the deal to the lawyer and for the lawyer to complete their due diligence.
Feel free to give me a call to discuss. (306) 222-7900
Looking forward to hearing from you.