Repeat Buyer

If you currently own your home and are hoping to either sell and buy again or keep it and buy a new property, this section is for you. Having owned before you might know the mortgage process but depending on when you last got your mortgage things may have changed. If you are hoping to buy again the process is:

  1. Contact me for a pre-qualification. 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.  If you are hoping to keep your current property we run calculations to see if this is a viable option. If you are planning to sell we look at payout penalties and porting options. Furthermore 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. (If you are keeping your current residence skip to step 4)

  3. Contact a Realtor.

    1. Whether you already know a Realtor you’d like to use or would like a recommendation of a great local agent, the next step is to contact them. They will do a free home evaluation. Running comparable homes that have been listed and sold to determine the selling value of your home. Once you agree on a price and a Realtor you list the property.

    2. Wait for an offer to be made on your property.

  4. Make an Offer. Knowing the purchase price that you are approved for your Realtor will show you listings within those numbers. Once you find a property you want to buy an offer is made. (If you are selling your property I generally recommend waiting until an offer is received before searching for a new property but if you do not want to wait you can make an offer on a new property and have the sale be conditional on the sale of your home.)

    1. Once an offer is received or your property is sold AND you’ve made an offer on a new property all of those documents get sent to me.

  5. Submit to a Lender.  After receiving the offers I add these documents to your existing file and submit everything to the lender. The lender is chosen based on what we discussed in step 2 about what’s important to you in a mortgage.

  6. 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.

  7. 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.

  8. Property Inspection & Appraisal. As we approach the condition date the property inspection and appraisal are usually done at this time.

    1. Property Inspection.  I strongly recommend getting a property inspection as they provide peace of mind on the structural integrity of the property and what’s going on in the unseen areas behind walls.

    2. Appraisal. Depending on the down payment amount and the property itself the lender may require a property appraisal to be done. This costs around $300 in the Grande Prairie area and is for the lenders security. It protects them by making sure the property does not cost more than what they are lending.

  9. Financing Approval. After all of the checks have been done and conditions of the offer are met financing is approved. This means that the lender has agreed to fund the mortgage. At this time they forward all of their required documents to the lawyer.

  10. Lawyer Meeting. A week or two before possession date you meet with your lawyer. They collect your down payment and any extra money owing for taxes or fees and go over all of the paperwork with you again. They explain the terms of the agreement, get you to sign everything, and satisfy the remaining lender conditions such as proof of insurance.

  11. Possession Day! This is the day we’ve all worked so hard for. You will get the keys to your new property while the rest of us celebrate from afar with you!

Please note that this is a simplified version of the entire process and there are more options and things to consider when selling and buying.  I have detailed a few more things to consider below but for a customized plan contact me directly.  

  1. If you initially put less than 20% down for a down payment your property is insured. Did you know that you can bring that insurance with you to a new property rather than paying the entire premium again? If the purchase price is higher you simply pay a "top up" fee. 

  2. If you do not want to pay the penalty on your existing mortgage, porting your mortgage may be an option. What this does is “bring” the mortgage from your existing property to the new property, if the values are not the same (which they rarely are) we can increase the total mortgage amount.

  3. Sometimes it happens that you have possession of your new property before you have to move out of your current property. Without the funds from the sale you don’t have the required down payment.  In this case, bridge financing is an option. The lender will (for a fee) loan you the extra money to bridge the gap between when you need the funds and when you receive them.

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TOUCH

#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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