You can invite all of the professionals involved in your purchase to the Mortgage Trail. This will give you a better sense of what documents are required and when they are due.
Borrower (you and possibly a partner or other co-signer) – In order for the Lender to provide you with the mortgage you need to fill the conditions outlined in the Mortgage Commitment. The supporting documentation usually revolves around Income, Credit, Down Payment and the Property. Who normally handles what?
Realtor – they are responsible for the paperwork on the property and the Agreement of Purchase and Sale. This includes any and all changes and/or updates to the transaction. It usually starts with the MLS listing and cascades from there. If any changes are made concerning the price or any other conditions of the sale, it usually involves the Realtor.
Accountant – if you are self-employed, you will need to provide a small mountain of documentation. Many business owners rely on their accountant to keep track of any number of items like their Articles of Incorporation, financial statements, tax submissions, returns and overall financial documentation. In the event you work for yourself, and are having a hard time locating business financial documentation, your Accountant is normally a reliable source.
Insurance Broker – there are many different forms of insurance. One of the most common Lender requirements is to have insurance coverage on the property, to cover such catastrophes like fire. As your partner in your new property (the lender sees you as such) they will insist on it. Your Insurance Broker may have specific questions about the Lender and vice versa in order to get things done properly.
Financial Advisor – some Borrowers will take money from an investment account and that can often involve your Financial Advisor. The Down Payment and Closing Cost paperwork has to go back at least ninety days and the ownership of the account has to be crystal clear. Your Financial Advisor probably has a good understanding of the Lender requirements and are usually a great resource to help find the right paperwork.
Giftor – do you have an immediate family member providing you with a financial gift to help in the purchase of your new place? If so, the Lender will require them to sign a letter that clearly shows they do not have an interest in the property and that the gifted funds do not have to be repaid. In some situations, the Lender may ask for the source account information of the Gift. These requests are normal and it will allow the Lender to comply with government rules around money-laundering.
Lawyer – they are acting on your behalf, and the Lender’s behalf, at the same time. You both have an interest in the property and it is the lawyer’s job to complete and register the paperwork correctly. The lawyer receives a specific set of requirements from the Lender and these requirements address a large number of things.
On Closing Day, for instance, the lawyer makes sure that the new ownership is registered on the property and that you have clear “title” of your new home. A couple of days before Closing, the Lawyer will arrange to have final documents signed and for you to make the final payment. Brace yourself. They will probably ask for a large amount of money (in the form of a certified cheque or bank draft) that will include the balance of the Down Payment, the Closing Costs and their Fees. Don’t worry, however, as your Mortgage Summary will prepare you for this sum.
Mortgage Broker – we are busy keeping track of all the above as well as speaking with the Lender and making sure that things happen on time. We’ll feel like best friends and/or your therapist as requirements are met, communication increases and closing approaches.