The exhilaration of buying a new home will motivate you to plan ahead to ensure you have all bases covered. Its good to keep in mind that multiple parties are engaged during the mortgage application process:
Mortgage industry experts include:
- Lender
- Mortgage Broker
- Realtor
- Home Inspector
- Insurer
- Appraiser
- Lawyer
- Purchase
- Refinance
- Transfer
- Renewal
Mortgage for Buying a New Home
Purchases are the most crucial mortgage transaction type for timely closing out of all others. There is often a person on the other side selling their property. If your purchase closing is delayed then the sellers closing is also delayed. In certain circumstances fees may arise from a delayed closing. This is why good planning with a mortgage broker, such as Anava Financing, is highly advised to avoid last minute surprises.
Lenders will insist that all conditions are satisfied 10 business days prior to closing. It’s always advisable to give all necessary documents to your mortgage broker as soon as they are requested. This allows the mortgage broker to review and submit the documents to the lender.
We typically advise a closing date no shorter than 30 days when buying a new house from the date the offer the offer tp purchase has been made.
Mortgage Switch/Transfer
Simply switching your current mortgage to a new lender is a mortgage transfer, which is often referred to as a switch. The most frequent time to do this is when your mortgage is up for renewal. New rates and promos are continually being released so its a good idea to check in with your mortgage broker regularly.
The transfer procedure can occasionally be finished in as little as two weeks. There is a considerable probability that the process may close late if you start it less than 30 days before your maturity (renewal) date. Its always a good idea to get in touch with us a couple of months prior to your maturity date. This allows us to shop the market and find you the best deal.
It’s not quite as important for a transfer to close on time as it is for a purchase, where it is of the utmost importance. Having said that, we’ll exert every effort to make sure it does.
If you are not able to find a better deal elsewhere then your existing lender will offer you some renewal terms. An open mortgage is a good idea since it allows you to move to another lender without any penalties.
Although the open rates are expensive, typically in the 9% area, you won’t need them for very long because you will be switching for a more favorable lender anyway. However, you should find the the new lender as soon as possible because every day spent paying the higher, open rate will reduce your savings.
Mortgage Refinancing
If you want to extend the amortization of your mortgage or raise the loan amount, you must refinance your mortgage. It takes up to 30 days to complete and is essentially equivalent to a mortgage transfer. If you need to close more quickly, a lawyer can handle the procedure, which can cut the time down by as much as a few weeks. A few hundred dollars more may be spent to have a lawyer handle the refinance closing, but if you need the extra cash quickly, it can be worthwhile.
Mortgage Renewal
The process is essentially nonexistent if you are merely renewing your loan with your present lender. Simply sign the renewal form, then mail it back to your lender. It is so simple that you can do it up until your maturity date. Despite being practical, it is still recommended to do some research and see if there is a better option.
Conclusion
Always, we will use every effort to make the mortgage closing go as smoothly as possible. While speedy closings are frequently possible, waiting until the very last minute can add stress and lessen the thrill of buying a new house. Every circumstance is unique.
Allowing adequate time will help us achieve our objective of giving you a better mortgage experience than you’ll find anywhere else. Please get in touch with us if you find yourself in a scenario where you must close right away. We would be pleased to go over your alternatives with you. If your renewal is coming up soon let us know and we can start looking for the options available to you.
