The mortgage loan process can be quite time-consuming and involves several bureaucratic steps. We have written this article to help you understand the different stages you can expect in the process when working with Lead Kash.
What are the stages of the mortgage loan process?
- Context Setting
- Information Collection
- Pre-Approval of the Process
- Choosing the Best Offer
- Property Appraisal
- Deed of Sale
Context Setting
The context-setting phase is very important, as the Lead Kash consultant will assess your needs and objectives. During this stage, we want to know the amount of the loan, the desired term, whether you already have a property or if you’re still considering options. At this stage, we set expectations and align goals.
Information Collection
The next step is to gather information about the clients and the property (if you have already selected one). You will need to provide documentation related to your income, employment status, credit profile (how many loans you have and their terms), spending habits (bank statements), and property information such as location, type, market value, and more.
Pre-Approval of the Process
Once we have all the required documentation and authorization forms for data processing, the mortgage consultant will prepare the entire application. It is the consultant’s job to match the application to the bank’s criteria and present its merits to various banks. The goal here is not just to provide simulations, as most of them are non-binding; instead, the objective is to secure one or more pre-approvals for you to choose the most suitable option.
Choosing the Best Offer
After receiving different mortgage offers, your Lead Kash consultant will present them to you, explaining the advantages and disadvantages of each. Mortgage offers vary in criteria such as cost, term, loan-to-value ratio, insurance requirements, and account maintenance fees. The consultant will help you decide which option best aligns with your goals.
Property Appraisal
The mortgage offers are contingent on a successful appraisal of the property to be used as collateral. Since the bank will finance a percentage of the property value, the higher the property’s value, the larger the loan amount will be. The appraiser will contact you to schedule a visit to the property, which will result in a valuation that determines the loan terms. This valuation may also influence the amount of your down payment.
Deed of Sale
The final step of the process is the signing of the property’s deed of sale. While this may seem straightforward, it involves several stages and procedures. At this point, taxes are paid, and financing is finalized, but not before issuing a life insurance policy, which may require medical exams depending on your health condition and the loan amount.
Buying a property is an exciting and emotional process, which benefits greatly from the support of a consultant who can guide you from start to finish. If you are ready to proceed or have any questions that need clarification, please fill out the form below and speak to one of our consultants.
