Valley Neighborhoods

Mortgage Process For Canadian Citizens Buying a Home in Arizona

This post was originally posted 6/10, 2011 By Chris Wyatt.

If you’re Canadian citizen buying an Arizona home or in the United States, understanding the Mortgage process for Canadian Citizens buying a home in Arizona will help make it a smooth transaction. The more you know about it, the easier it will be.

Step 1- Applying for a U.S. Mortgage Loan- The process can begin via phone or in person with an RBC Mortgage Loan Officer (MLO) that provides the information needed to make informed, smart decisions. Your CLS will discuss your financing needs; present product options and explain how different options affect your payments, interest rates, and principal reductions.

After product selection and application, you will be provided with aGood Faith Estimate and other early disclosures that review the costs associated with getting the loan and the loan structure. They will review the mortgage loan approval process and how that might be different from what you are accustomed.  Your RBC MLO will give you an indication of whether or not you have preliminary approval for the product chosen.* You will need to provide information to verify your income,** assets,** debt and residence history.

Step 2-Processing- After your completed mortgage application is received, a Canadian credit report is obtained to verify your credit rating. You may also be asked for additional documentation.  A 3^rdparty appraisal and title work will be ordered to verify the value of the property and to verify current lien holders on the property. Then, your RBC MLO will lock in your interest rate on the mortgage product you chose. This process usually takes 5-10 business days.

Step 3- Underwriting may come back with conditions- Your loan will be submitted to the underwriting department for approval. Underwriting may come back with conditions. Your MLO will review and explain each condition. Once your loan is approved to close, you will be notified and closing documents will be prepared and sent to the location where the closing will be held.

Step 4- Closing typically takes 30-40 days to complete- In the U.S., it is customary for the borrower to attend the closing; however closings may be negotiated by mail. Many closing agents require Canadians to sign in front of a US Notary. This could require the borrower to schedule an appointment with their local US Embassy or Consulate. The paperwork presented at closing is extensive and legally requires the signature of borrowers. If you’re unable to attend the closing, your MLO must be notified in advance, as well as your attorney, so they can set up a process for the loan to close without you there. Please understand that closings not conducted in person by the borrower may take additional time to complete. In addition, some state laws require the lender to have completed documentation prior to funding.

This process, from application to closing, typically takes 30-40 days to complete.

This entry was posted on Monday, June 13th, 2011 at 9:31 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.