Refinance

People refinance or take equity out of a property for a variety of reasons. Some need to pay off debt while others want to renovate, still others are hoping to purchase another property. As long as there is more than 80% loan to value a property can be refinanced. (Loan to value means that if you divide your outstanding mortgage by what your house would be appraised for this number cannot exceed 80%). If you are looking to refinance I have outlined the process below.

  1. Contact me. Depending on your schedule we can do a phone application, an online application, or an in person application. The application covers areas such as employment history and income, credit score and history, and financials including assets and debts. We compile all of this information along with calculations of how much equity is in your current property to see what kind of purchase price you could afford.  

  2. Customized Plan. Once we have all of that information we look at your particular situation.  We discuss your future plans and what’s important to you in a mortgage. You may be surprised that not all mortgages are created equal; they come with different rates, penalties, and payback options so together we will go through this and make a plan that fits your life.

  3. Submit to a Lender. After evaluating your specific situation and finding a better option I will send your file to a lender. The file will include all your documents including property information, current mortgage balance, paystubs, Notice of Assessments, etc.

  4. Commitment letter. A common misconception is that the commitment letter means you’ve been approved, this is not the case. The commitment letter is a letter from the lender stating that they have put this money aside for your mortgage and as long as everything meets their criteria they will give you a mortgage.

  5. Underwriting. Once the lender receives the signed letter back they review all of the paperwork we’ve sent them (notice of assessments, T4’s, paystubs, the property info, credit info, etc) to ensure everything meets their guidelines.

  6. Appraisal. On refinances the lender will request an appraisal (around $300 in Grande Prairie). This confirms the value of the property and that the new funds do not exceed 80% of the value.

  7. Financing Approval. After all of the checks have been done and the appraisal is approved the financing is approved. This means that the lender has agreed to fund the mortgage. At this time they forward all of the required documents to a signing officer.

  8. Signing Appointment. The FCT signing officer will meet you at your home to sign the required documents. The reason we use a FCT signing officer is for the convenience of them coming to your home, they are lender approved, and they cost much less than a lawyer.

  9. Wait for Funding Date. After the signing appointment and all other approved conditions have been met we wait for the funding date. At this time the money will payout the existing mortgage and the remainder will be used for specified purpose (i.e. renovation, down payment, payout debt, etc.)

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#101, 10920-84 Avenue Grande Prairie, AB

Cell: 780-832-8410 

Office: 780-538-0061

Email: smiller@mortgagegroup.com

© 2018 by Stefanie Miller 

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