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Mortgage processes are more than just about rates

The mortgage origination process begins right from when the broker or the customer starts contacting lenders for opening a mortgage application for them and ends at the closing of the deal. In between these two stages, there are a lot of aspect which are kept in mind and a lot of minute little things taken into consideration. Though there are a lot of companies dealing with such mortgage applications, but most of them in cities like Ontario, Toronto and Vaughan, more or less are likely to follow very similar guidelines and procedures, the adherence to which is taken care of while your mortgage origination application is reviewed. That is the first step which takes place where an underwriter reviews the application and ensures whether it meets all the parameters of the mortgage loan company. The main reason why such a step is the foremost important thing to be done is because the general rules and guidelines followed by such organizations are tightly bound up with the Canadian banking community. In order to get your mortgage loan approved and get the mortgage insurance, and therefore must meet the Canadian Mortgage and Housing Corporations guidelines.

This step of underwriting of the mortgage applications is important and it is an important standard followed by most of the senior mortgage brokers. The reason for this is that the underwriters of the lenders are usually much occupied and thus are only required to work on a certain number of mortgage applications per day, and not more than that. Therefore most senior mortgage brokers do the advanced underwriting process within their limits as the application must fund. If the application is send out to different lenders then the chances of your mortgage loan application getting approved is increasingly less, which will lead to higher chances of disappointment later on as a result of a negative impact. Due to this reason, the mortgage processing remains one of the lengthiest processes in order to produce a residential mortgage in the world of today. Yet, thankfully, the time taken for such process is still comparatively less than the long three weeks to 45 days process time taken until way back during the 1990’s. Today, this length of time has been cut down by a large extent due to the involvement of technology and the high rise of mortgage application loans on customer demand. As more and more people are getting attracted to such deals, efforts have been made ever since to speed up the process as quick as possible, such that these days lenders are in the position to give out a mortgage commitment within a day of signing all the paperwork. As long as one receives a commitment on his or her mortgage from the lender, there has been a rise in the competitive bids which has been facilitating the mortgage application process for quite some time now. As long as all the conditions on the paper is met, lenders today do not hesitate for a moment to make a trustworthy and completely mortgage commitment to their customers, thus building a stronger relationship.

Also, due to the various types of loans and programs available to customers today, the approach towards processing has taken a whole new dimension altogether. Instead of following a universal procedure to facilitate the application process, lenders have found it more convenient to go about the application process according to the program of loan applied by the customer, thus ensuring that all the specific needs and requirements of the customer are met within a specified period of time. The time taken and the process of documentation thus largely depend on the type of program your loan is based on, as different programs have different requirements and priorities. For example, there are ‘No Frill Mortgages’, which focuses only on certain consumer specifications to be fulfilled and thus the processing of the applications and documentation is done accordingly.

Mortgage brokers have come as a great hand of help for all those who have been trying to apply for certain mortgage loans and have not been able to pass through it due to their unawareness about certain guidelines and their lack of knowledge of mortgage rates and other specification. Mortgage brokers are there to advise their customers and clients on the best type of loans and deals which could benefit them, and also educate and inform them more on fixed and variable interest rates through the process of rate lock in. Also, it is primarily because of the broker than the application for a mortgage loan made by the customer is facilitated at a speedy process, enabling the customer to receive his funds as early as possible, without creating more delay. Brokers educate their clients on all the parameters he needs to take care of before signing on certain paperwork, and also helps the clients to compare the price and programs of the loans extended by different competitors and various lenders, so that at the end, the customer is able to choose a deal which fits and serves him in the right manner.

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