Step 3 - The Application

Applying for a mortgage is an important transitional phase in the mortgage process. To this point, you may have begun to determine your needs, and may have even become pre-approved online - without the assistance of a mortgage professional. (Use the online mortgage application now)
Now, you are ready to formalize the process. Working with a mortgage professional will help you:

- Identify all required documentation regarding your income, assets, and liabilities

- Determine the most comfortable mortgage loan amount and appropriate mortgage loan program to meet your needs

- Prepare your mortgage loan application for underwriting


What Documentation is required

We will need information concerning your employment history, your financial assets, and your credit history. In order to process your application, we typically need to obtain the following documentation at the time of application:

- Copies of your most recent, consecutive pay stubs (covering 30 days), or a copy of a signed offer letter stating your new salary

- Salary letter

- Miscellaneous information, such as copies of work permits, divorce decrees, etc., may also apply, depending on your particular situation; your mortgage consultant can advise you about documenting any unique information


Additional Information

Additional information may be required if you fall under one of the following categories

Self-Employed Borrower
Commissioned Income

For more detailed information Call Tony Dhami 905 515 8587, or Sunil Khanna 905 719 7773.


Do I need Mortgage Insurance

Mortgage Insurance (MI) protects the lender in the event you fail to make your monthly mortgage payments. Typically, mortgage insurance is required if your down-payment is less than 20% of the purchase price of the property. You are not responsible for obtaining mortgage insurance. It is the lender's responsibility to order mortgage insurance from a mortgage insurance company after your loan is approved. The mortgage insurance premium is usually added to your regular monthly mortgage payment.
It may be possible to eliminate mortgage insurance by using a blended mortgage product. This is accomplished by putting 15% down and issuing a first mortgage for 75% of the purchase price. There is then a second mortgage that makes up the remainder of the loan balance.


How do I request a Rate Guarantee

A rate guarantee is a written agreement between the lender and the buyer guaranteeing a specific interest rate, provided the loan is closed within a set period of time. The typical guarantee period is 120 days, but this can vary from lender to lender. What this means is that a buyer is assured the best fixed rate for the next 120 days. If the rate increases the client will get the guaranteed rate. If the rates drop the client will get the lowest rate.


How much does it cost to apply

Up-front Costs

We not charge an application fee. If an appraisal is required the client will pay the appraiser directly.

Costs at Closing

The total amount of money needed to close is comprised of your down-payment, closing costs, and prepaid items for your initial insurance and real estate tax escrow accounts and pre-paid interest. We will provide you with a Good Faith Estimate of Settlement Costs at the time of application. These fees vary from lawyer to lawyer.


We offer you four easy ways to get started:

- Electronically: Complete and submit a secure online Pre-Approval application

- Fax: Print an Mortgage Application form available on the website and fax to Tony Dhami at the Designer Mortgage office ( 905-575-8878 ).

- Over the phone: Contact us to schedule a call with a Mortgage Consultant (Call Tony Dhami 905 515 8587, or Sunil Khanna 905 719 7773.)

- In person: Meet with the us in the office (view map).


Additional Documentation If You Are A Self-Employed Borrower:

- Sole-Proprietorship - Most recent 2 years Notice of Assessment from Canada Revenue Agency, T1 General.

- Partnership - Most recent 2 years Notice of Assessment from Canada Revenue Agency including T1 general

- Corporation - Most recent 2 years signed Corporate Tax Returns, to include Compensation of Officers
Most recent 2 years Personal Tax Returns, with all accompanying schedules
 

Additional Documentation If You Receive Commissioned Income:

Most recent 2 years signed Tax Returns, to include all schedules
Copy of most recent consecutive pay stubs to cover 30 days, or copy of signed offer letter stating new salary
Most recent 2 years T4

Go to Step 4 - Underwriting

Go Back to Step 2 - Pre Approval

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