Timing is Everything

780-416-1085

Home › Our Blog › General › Timing is Everything

Posted on August 3, 2023

Categories: General

When it comes to your mortgage, it can be hard to keep track of all the dates, timeframes, and deadlines. While our team has streamlined our process to make sure nothing is missed on your behalf, it can also be helpful for you to be mindful of these important dates to eliminate unnecessary rush and stress.

Pre-Approvals:

Your pre-approval will let you know exactly how much you qualify for, and it can also secure an interest rate for you for up to 120 days. This is particularly helpful if rates go up during your home search, as you will be locked in at the lower rate. If rates go down, your broker will work to secure a new, lower rate on your behalf. It is also important to note that possession of your home must happen within the 120-day period.

Condition of Financing Date:

When you find the right home to purchase, a date will be chosen by you and your realtor and documented on the purchase contract. This is the date by which you must meet all the conditions set forth by your lender for them to fully approve your financing. The recommended time frame is at least ten business days from the day of writing your offer. Any documentation required must be submitted by our office and reviewed/approved by the lender, so it is wise to provide these documents to your brokerage assistant as soon as possible.

Lender Turnaround Time:

When a broker mentions turnaround time with lenders, they are referring to the time frame in which documents are reviewed and approval paperwork is generated within a financial institution. Like any business, banks and lenders have heavy workloads, and we are proud to establish good relationships with our lending partners to reduce wait times for you. It is important to understand that these institutions are required to perform their due diligence and it can take anywhere from 3 to 10 business days in high season for the full review of paperwork.

Closing Date:

This is the day your mortgage funds with your lender (yay!!) and the day you take possession of your new home!

First Payment Date:

If you make monthly payments on your new mortgage, your first payment will be one month AFTER you take possession of your new. This comes as a surprise to most new homeowners – if you were previously renting, you may be used to paying in advance.

Tips for a seamless experience:

Avoid scheduling extended vacation time in the 3 weeks leading up to your closing date. If you must be away, ensure your broker is aware of it well in advance in order to ensure all the final signing appointments can be scheduled accordingly.
Ensure the information you provide to your broker is current.

Watch for statutory holidays when choosing condition or closing dates. Lenders and lawyers are generally closed on these dates!
Each party involved needs sufficient time to complete their portion of work. From the time of approval, the lender could require time for final review and then it goes to your lawyer for completion of their requirements and a signing appointment; then a few days may still be needed before the mortgage can fund. Some lenders even set a minimum requirement of 10 days between the date of your financing and closing, so be sure to inquire with your broker about the steps and timeframes for your situation.