Mortgage FAQ

Mortgage Instructions – Getting Started

If you are mortgaging the property you are purchasing, your lender will send us the mortgage instructions. The instructions provide us with specific information so that we can prepare the appropriate documents. We take it from there. We do all the necessary searches and prepare the mortgage and any related documents. Our work can only start once we receive the mortgage instructions. Receiving these documents well in advance of closing increases the likelihood of closing on time. Any efforts you and your mortgage broker (if you are working with one) can take to encourage the lender to provide us with mortgage instructions sooner rather than later are helpful. If you have not done so, please provide us with the contact information for your lender and broker. The name of a specific person and direct contact information is the best.

Mortgage Amendments

Think twice about changing your mortgage at the 11th hour. Typically, any changes to the mortgage such as reducing the amortization period or increasing the down payment results in the lender sending us a completely new set of mortgage instructions. If we have already prepared the mortgage documents they will have to be prepared all over again. This will result in additional charges to you along with possible delays in completing the documents and completing the purchase.

Bridge or Interim Financing

Think twice about changing your mortgage at the 11th hour. Typically, any changes to the mortgage such as reducing the amortization period or increasing the down payment results in the lender sending us a completely new set of mortgage instructions. If we have already prepared the mortgage documents they will have to be prepared all over again. This will result in additional charges to you along with possible delays in completing the documents and completing the purchase.

Bridge or Interim Financing

Here is a video where our former associate Alex Dimitroff talks about bridge or interim financing.

 If you are selling and buying at the same time, especially if the purchase takes place prior to or on the same day as the sale of your existing property, you may require interim or bridge financing. This is an amount you borrow from your lender to ensure you have sufficient funds to complete your purchase pending receipt of your sale proceeds. Even if the sale closes before your purchase, interim financing can save a lot of stress and uncertainty. If there is a delay (which can happen for a number of legitimate reasons) in receiving your sale proceeds, without bridge financing the closing of your purchase will be delayed until the sale proceeds are received. If you have any questions or concerns about whether bridge financing applies to you or the particulars of bridge financing, please contact your lender, your realtor, or one of our team members.

Funding Your Mortgage

Are all the conditions for funding the mortgage fully and completely satisfied? We have a long litany of stories we can share about delayed funding where the borrower failed to provide the broker or lender with items such as proof of last year’s income or proof of payment of outstanding balances on credit cards. Talk to your lender or broker to make sure you understand exactly what they require. For example, a two-month old credit card statement with a bank stamp may or may not be adequate. The lender may require a current statement showing a zero balance.