In order to complete the process after you make an offer on a property, your lender will ask you to provide the Agreement of Purchase and Sale and MLS listing with the mortgage loan application. They will arrange for an appraiser to conduct a home appraisal on the property you wish to purchase to ensure that you didn’t overpay for the home – or, more accurately, that they’re not lending you more money than the fair market value for the home. If you have less than 20% for a down payment and require mortgage insurance, then the property also has to meet approval from the mortgage insurer, be it Genworth Canada, Canada Guaranty, or Canada Mortgage and Housing Corporation (CMHC).
Your lender will update any of your financial information that has changed (if any), add the specific property details to the equation, re-verify your credit score, income, and debt, and factor in the particular mortgage product that you’ve chosen.
If everything goes smoothly and you get final mortgage approval, congratulations – you’re on your way to closing!