At Flow Mortgage Co. we understand that applying for a mortgage can be a significant life event. That's why we've crafted a journey tailored to your needs, keeping you informed and empowered throughout the entire process. Our exclusive milestones act as your personal GPS, guiding you towards homeownership with ease.
Say goodbye to the days of uncertainty! Our milestones offer real-time updates on your mortgage journey. You'll never have to wonder about the status of your application or where you are in the process. Stay in the loop, stay confident.
With our milestones, you're in the driver's seat. Know which stage you've reached and what's up next. Feel the reassurance that comes with being in control of your path to homeownership.
No one likes unexpected surprises, especially when it comes to such an important decision. Our milestones keep you informed about each step, so you can plan ahead and sail through the process without any bumps in the road.
We know everyone's journey is unique. Our milestones are designed to accommodate your pace. Move forward when you're ready, and take your time when needed. Flexibility is key.
Picture it like a treasure map; our milestones mark each step of your journey, guiding you towards the ultimate prize: your dream home. Follow the path with confidence and certainty.
As you reach each milestone, we'll celebrate with you! Your progress is our joy, and we'll be there cheering you on at every stage of the process.
Your mortgage application has been received! This stage is all about gathering essential financial documents that help us assess your mortgage eligibility. You're in good hands, and we're working to make this process as smooth as possible for you.
What documents will we need?
How do you submit them?
Why do we need these documents?
Documents such as payslips, bank statements, or tax returns are generally valid for a specific timeframe, often 30 to 90 days, depending on the lender's policy and the nature of the document. After this period, though, you might be requested to provide updated versions to ensure the most recent representation of your financial situation. We’ll let you know well ahead of time!
It happens! Reach out to your Associate Mortgage Advisor (AMA) for some help. They can provide guidance on potential alternatives or suggest ways to retrieve or reproduce the necessary documentation. Always communicate any challenges you face; we're here to assist and find solutions together.
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Contact Person: Account Manager
During this stage, your primary task is to submit all the required documents we've outlined above. Think of it as building the initial framework for your mortgage journey.
Why do we need these documents?
In short, your documents help us understand your finances better, so we can help you get the best mortgage.
The Process Simplified
What Comes Next?
Contact Person: Account Manager
Welcome to the document review stage! Your documents are currently being reviewed by our team, who are assessing your income, assets, and credit history. This is where we dig deep to ensure you get the mortgage option that best fits your financial profile.
1. The review in detail:
2. What might make the review take longer:
3. What happens next:
Contact Person: Account Manager
Congratulations, you've made it to the pre-approval stage! This means you've met all the preliminary requirements to qualify for a mortgage loan.
1. Understanding Pre-Approval
What it means: Pre-approval confirms that a lender is willing to offer you a mortgage based on your financial standing.
The confidence letter: This letter is your ticket forward, detailing the mortgage amount you're pre-approved for and often at a guaranteed rate.
2. Making the Most of Your Pre-Approval
3. Navigating the Variables
4. Stay Connected Throughout Your Search
Your pre-approval is dynamic, adjusting to market rates and your evolving financial status. Keep the communication lines open, so we ensure your pre-approval remains relevant and beneficial.
Once you find that dream property, reach out! We're eager to finalize the best lending terms for you.
Contact Person: Account Manager
Your mortgage application is now in the hands of the lender. This is the final hurdle before your mortgage is approved. As we await the lender's decision, this stage involves verifying your creditworthiness, property value, and finalizing the details. Be ready for swift action; this is the home stretch!
1. The Waiting Game
2. Your Role Now
3. After the Lender's Response
Contact Person: Account Manager
As your mortgage application enters the lender review phase, understanding what's happening behind the curtain can be both intriguing and reassuring. Here's what's unfolding:
1. What's the Lender Doing?
2. From Review to Conditional Approval
3. How We Keep the Ball Rolling
We stay in constant touch with your lender, checking on your approval's progress every day. Your peace of mind is our priority. Rest assured, we're on top of it.
Contact Person: Account Manager
Congratulations on achieving conditional approval! This milestone means your application made a positive impression. Let's explore what's happening now and what you can expect next.
1. What Does Conditional Approval Mean?
2. Meeting the Lender's Conditions
3. Stay Connected
Given the dynamic nature of this stage, staying reachable (via phone or email) ensures that any potential questions or requirements are addressed immediately. It's all about ensuring a smooth transition from conditional to full approval.
Securing a conditional approval is significant, but we're not resting until we get that final nod. Your cooperation and prompt responses will be invaluable in this journey. Let's bring this home together!
Contact Person: Account Manager
Welcome to the appraisal stage! This is a critical juncture because the appraisal result directly influences the amount of loan you'll get. Let's unpack what this stage involves and why it's so crucial.
1. Why an appraisal?
2. Payment
Once a physical appraisal is deemed necessary, you'll receive a payment link. It's crucial to process this immediately. If you're unsure about anything, your associate advisor is here to help.
3. Appraisal execution
After your payment, the appraisal company handles everything. They'll liaise with the necessary parties, schedule visits, and ensure it's all streamlined.
4. Making a great impression
A tidy home can leave a favorable impression. If you've renovated, ensure everything's finished. During the appraisal, it's best to let the appraiser conduct their assessment without interference.
5. After the appraisal
Once we have the appraisal report, we'll promptly update you with the results, ensuring you're in the loop throughout.
Contact Person: Account Manager
Congratulations, the appraisal process is in motion! This is the stage where your property's value is professionally assessed by an appraisal company. Getting through this stage swiftly and successfully brings you one step closer to securing your loan.
1. Purchasing Property?
Remember, we'll be arranging the appraisal with the real estate agent. You'll receive an email soon with payment details. Ensure timely payment to keep things moving smoothly.
2. Refinancing?
3. After the Appraisal:
Once the appraisal concludes, we'll receive the detailed report within two days. This is then forwarded to our lender for further evaluation.
Contact Person: Account Manager
You've crossed another milestone; we've received the appraisal report for your property. At this stage, the valuation of your property will be reviewed by your lender, a critical factor in progressing your loan application.
1. Refinancing Your Property? Understand the Value:
2. Purchasing a Property? Here’s What the Value Means:
Final Note: While the appraisal outcome is significant, it's just a part of the whole process. Stay tuned for further updates and next steps. We're with you every step of the way!
Contact Person: Account Manager
You've reached an exhilarating milestone! At this stage, you've met all the lender's financing conditions, clearing the path to secure your loan. This is a crucial affirmation of your financial capacity and credibility.
1. Why is This Stage So Important?
2. Potential Considerations:
3. What's Next?
If you identify any issues during the final walkthrough of the property, it's essential to bring them up immediately with your realtor. Depending on the nature of the problem, solutions can range from requesting the seller to fix the issue before closure, negotiating a price reduction, or in some cases, even reconsidering the purchase.
There are two main steps: first, the mortgage papers, which can be done in a day, and then the legal papers for transferring the property title. Altogether, from start to finish, you're looking at a few days to a couple of weeks. Don't worry, we'll guide you through each step to make it as smooth as possible!
Yes, technically you can still back out after removing financing conditions, but doing so may have financial repercussions. Depending on your agreement with the seller and the specific clauses in your contract, you might lose your deposit or be liable for other penalties. It's crucial to review your purchase agreement and consult with your realtor and our team before making such a decision.
Contact Person: Account Manager
You're in the home stretch now. At this stage, we've successfully sent all your mortgage instructions to your lawyer. This is the foundation for the legal aspect of your property purchase, setting the stage for your final steps.
1. The Significance of the Statement of Adjustments:
This document, crafted by your lawyer, outlines various financial adjustments, from prepaid taxes to utilities. It’s crucial to understand and review this statement well ahead of your lawyer appointment.
2. Preparing for Your Lawyer Appointment:
3. What Happens After the Appointment?
Once you've signed the loan documents, your lawyer oversees the mortgage financing closure. You’re nearly there!
Contact Person: Account Manager
Your mortgage file is ready to fund! At this stage, everything's aligned for your loan amount to be transferred, moving you closer to owning your new property. Here's a rundown on the final dates and tasks ahead:
Oh, just one more thing… be sure to celebrate!
Buying a property comes with its fair share of nerves, but now you can sit back, wait for the keys, and revel in this big day. Congratulations!
Contact Person: Account Manager
Home equity is the difference between the current market value of your home and the amount you still owe on your mortgage.
Formula:
Home Equity = Home's Market Value - Outstanding Mortgage Balance
You can build equity by:
- Making regular mortgage payments.
- Increasing your home's value through renovations or market appreciation.
- Paying more than the required monthly mortgage payment.
You can access your equity through:
- Home Equity Line of Credit (HELOC): A revolving credit line using your home as collateral.
- Home Equity Loan: A lump sum loan secured by your home.
- Cash-Out Refinance: Refinancing your mortgage for more than you owe and taking the difference in cash.
Common uses include:
- Home renovations.
- Debt consolidation.
- Education expenses.
- Large purchases or investments.
Borrowing against home equity increases your debt and puts your home at risk of foreclosure if you fail to make payments.
Lenders typically allow you to borrow 80-90% of your home’s appraised value, minus your outstanding mortgage balance.
Yes, home equity can increase due to:
- Regular mortgage payments (reducing loan balance).
- Market appreciation (rise in home value).
Yes, if you fail to repay a HELOC, home equity loan, or cash-out refinance, the lender can foreclose on your property.
Bridging financing (or a bridge loan) is a short-term loan designed to provide funding until long-term financing can be arranged or an existing financial obligation is settled. It is commonly used in real estate transactions.
You might need a bridge loan when:
- You're buying a new property before selling your current one.
- You’re waiting for longer-term financing approval.
- You need quick funding to cover short-term cash flow gaps.
A lender provides temporary funding based on the equity in your current property or another asset. Once you secure long-term financing or sell the property, the bridge loan is repaid in full, usually within 6–12 months.
- Quick access to funds.
- Flexibility to secure a new property without waiting for the old one to sell.
- Canprevent missed opportunities in fast-moving markets.
- Higher interest rates compared to traditional loans.
- Fees can be substantial (e.g., administrative or legal costs).
- Risk of repayment challenges if your property doesn’t sell as planned.
The amount depends on your current property’s equity and the lender’s terms. Typically, bridge loans cover up to 80% of your current property value minus any existing mortgages.
Most bridge loans don’t require a down payment, but they require sufficient collateral, such as equity in an existing property.
Bridge loans are typically faster than traditional loans and can be approved within a few days, depending on the lender and the complexity of your situation.
Yes, alternatives include:
- Home equity loans or lines of credit
- Contingency clauses in property contracts.
- Personal loans or private funding.
- Interest rates and fees.
- Loan terms and repayment options.
- Lender’s reputation and experience.
- Flexibility in repayment in case your sale or financing is delayed.
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