The Loan Process
If you are buying a house in the West-Island of Montreal or any other part of the world, expect to go through a long loan process. This process is somewhat tedious, but you need to get over it so that you can get the loan you want. Documentation, loan application, additional documents and closing are some of the topics we will cover herein.
The Loan Process´s Documentation
Your lender requires a lot of documentation in order to lend you money. They will check out your financial data, credit score, and employment information in order to be sure you can pay back the loan. The documentation comprises bankruptcy papers, divorce decrees, purchase agreement, appraisal, rent, deposit, any other mortgage, pay stubs, tax returns, bank statements, and other documents a lender might deem as necessary.
Lenders require that you fill out a loan application in addition to providing other financial data. The underwriter is the employee of the bank that will make sure everything is working properly. The loan agent will be the link between the borrower and the underwriter. The underwriter might take up to 7 days to go over all the documentation provided, so you have to wait as much as possible. The underwriter will either approve the loan or require additional documentation.
Additional Documents and Closing
The underwriter might tell the agent that certain conditions must be met. This is the point where conditional approval is reached, so do not worry about it. The removal of these conditions is what is pending, so just get over it right away. Once your loan in approved, expect both to wade through and to sign a lot of papers.
The loan process is required if you are buying a house today, and the loan officer will ask you to provide him with tons of documents. Make sure these documents are accurate and up to date.