Home Loan

Buying a home can be one of the most expensive things we will ever have to do. Fortunately there are plenty of home loan companies available to make buying a home much more achievable. In this guide we shall look at the process of getting a home loan in Canada. The home loan process in Canada, and indeed anywhere in the world, can be very confusing and complex. However by understanding just a few steps it can give you a better idea of how it works. 

 

Applying for a Home Loan

 

Before you will be approved for a home loan you need to provide the potential lender with various documents. These documents can include tax returns, recent pay slips, bank statements, verification of employment and more. This is essential for the lender to verify and be assured that you are able to repay the loan. You will have to provide the potential lender with a completed loan application as well as the required documents. When you are applying for a home loan you will speak with a loan agent who works as a middle man between you and the underwriter – the one who will essentially approve your loan. 

 

It is not unusual for it to take several days and sometimes over a week to hear back with the decision on your home loan. It is also not unusual to have to provide additional documents to the underwriter for them to come to their decision. Often people will be given a loan approval with conditions meaning that your loan is only approved once you have met these stated conditions. Once the loan has been approved the home loan papers will be sent to either the escrow or your attorney. At this stage you will be called in to sign the papers to make your home loan official. Once you have signed the papers it will usually take two to three days before the money is transferred into your account. 

 

The overall home loan approval process can take over a month – particularly for those with poor credit rating or those that are self-employed. However it can sometimes be completed in less than a fortnight.