
Prepare
your paper work
Getting approved for a mortgage is more challenging
today than it was five years ago. Qualifying requirements have changed and
there is more emphasis on making sure that information in your application is verified.
If this isn't your first mortgage, don't be surprised if you're getting
asked for documents that you didn't have to provide before. While each mortgage
situation is different and requires different documents, there are
some standard verification documents that are common to every mortgage
approval.
Here
are the ones most commonly requested;
Credit Report: Normally, the mortgage professional you're
working with will order your credit report and submit it to the lender with
your mortgage application. It is rare for the lender to accept a credit report
provided by the borrower that they ordered themselves.
Down payment confirmation
A lender needs proof that you have the down
payment. If the money is coming from your own funds, then the lender needs a 3 -month
history via bank statements or statement of investments if using GICs and
RRSPs. If there is a large deposit in your account within 90 days, an
inheritance for example, then lenders will need to know where it came from and
require verification. If the funds were gifted to you, they require a gift
letter from an immediate family member.
Income
confirmation
You will normally have to provide your two most
recent paystubs, a Letter of Employment and in some cases your last two years
of tax returns. As well as NOAs to confirm no outstanding taxes. If you are
self employed, you'll need to provide the last two years of tax returns, NOAs
to confirm no outstanding taxes and depending on the lender, invoices, and bank
statements.
Lawyer
Contact Information
If your lender requires a lawyer to close your
mortgage, you will need to provide the contact details including name of law
firm, phone number, fax number, office address and email. Some mortgage
transactions such as refinances can be completed without a lawyer; instead it
will be facilitated by a title closing company.
Existing Property information
If you are on the title of any other property, you
will need to have documentation to confirm the monthly costs related to that
property.
Agreement
of Purchase and Sale
If you are purchasing, this agreement is required
along with the property's MLS sheet.
Your realtor will draw up the agreement. If there are any conditions such as
subject to financing or subject to the sale of your existing home, then the
lender will need confirmation the those conditions are lifted. Your realtor
will provide those documents.
Appraisal
Property appraisals are becoming more common these
days. The lender wants to know the real value of the home, independent of its
listing or negotiated price, to compare against what you've agreed to pay to
make sure the house is actually worth the money they will be lending you. This
is a cost to you and depends on the property and region.
Working
with a Mortgage Professional...
Of course there are exceptions and unique
situations. An experienced mortgage professional will guide you through the
mortgage process. They have developed
relationships with lenders,and therefore, are equipped to work with lenders on your
behalf. By working with a licensed mortgage professional, you have a trusted adviser and problem solver.
RBC Wendy Coats - 780-812-8939
TMG The Mortgage Group Miranda Morrison - 780-721-0349
The Mortgage Centre 4910-50 Avenue, Cold Lake - 780-594-1403
Our Mortgage Monday Specialists
Mortgage Architects Bailey Coats- 780-573-0002
TD Canada Trust Janelle Przekop/ Yael Meier - 780-826-8800
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