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Ben Sage, Moving Woodstock

6 steps to removing your Mortgage Financing Clause

Posted on December 17, 2013 by Ben Sage in Buyer

So if you’re like 98% of home buyers (stats completely made up), you’ve likely got a financing condition on your purchase agreement.  We probably asked for 7-12 days to remove the condition, but you’re a little unclear as to how that exactly happens.  Here’s the process:

1. I send all the necessary paperwork to your lender.  Hopefully by now, you’ve picked the lender you’re likely to use for your mortgage.  If not, ask me for a referral!

2. Verify that your lender has all documentation and information required for approval.  Proof of income, assets and liabilities, proof of downpayment and closing costs, etc.  Your lender will have an exhaustive list of what is required.

3. A conditional approval from the lender.  After carefully examining and verifying the information in your provided documentation, and approving of the purchase price vs. market value of the home you’ve made an offer on, the lender will issue a conditional approval.

4. Meet or arrange to meet all conditions on the conditional approval.  You, as the buyer, should satisfy all of the conditions contained within the conditional approval provided by the lender.

4b. Does this conditional approval contain an appraisal?  If it does, demand that the bank order it well in advance of the expiry of your conditions.

5. Get a “Mortgage Commitment Letter” from your lender.  This is our only physical proof that you were ever approved for the funding.

6. Meet with me to complete the fulfillment of the financing condition.

Simple right?  That said, things can come up that will complicate the process.  I make every effort to be available to help at all points during the purchasing process.   Let me know how I can help, and I’d be more than willing to do so!


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