Obtaining A Mortgage
You are now ready to move forward, but do you know what you can afford. Most Canadian Banks are under very strict federal Government Qualification Guidelines. This is not your parents nor grandparents era where credit was very easy to qualify for as long as you paid your bills on time. Today numerous documents and details must come together in a very short period of time!
You likely would like direction from your exclusive buyer’s agent on prequalifying for a mortgage. You should know a simple prequalification does not mean the lender is obligating themselves to mortgage the home in the selected neighborhood at all. Unless a proper process is followed a prequalification may only be a maybe which can lead to disappointment and frustration. The Dumbrells use to operate a multi location Mortgage company, trained many mortgage brokers and have that expertise to share.
So where do you start?
Your experienced buyer’s agent is step one. You will be asked at minimum for the following:
- Social insurance numbers – as well as birth dates
- Photo ID – generally a driver’s license showing your address
- Proof of employment and income which will include your CRA Notice of Assessment
- Employer’s name, address, phone number. Contact person for verification (copies of pay stubs & T4 copies if available)
- List of all credit cards and other loans with outstanding current balances
- Current saving, chequing and other accounts statements
- List of current assets, RRSP funds, stocks, bonds and backup valuations
- Liabilities – lender will want list of creditors, monthly payments, total balances due, including auto loans, student loans, credit cards, etc.
- Minimum 3 years residency and current rent paid
- You will need details on your purchased property including the contract
- Down payment. You will be asked to substantiate the down payment and ensure it has been in your bank for 3 months, unless gifted or from equity in a property or asset being sold.
It can get more complicated if you are separated or divorced, had a bankruptcy, poor credit, disability income, guarantor loans, or even auto loans. Tip One Please do not go out and buy a new car , furniture or any major purchase on credit if you are preparing to buy a house without talking to your buyer representative. Your financial position when arranging a mortgage cannot change until your purchase has completed. We have seen lenders at the last minute withdraw their approval because the applicant has made these sort of financial changes.
Words and terms you should ask about: the mortgage term, charges, title details, lender point fees.
Is there more? Yes, we still need to discuss portability, insurance coverages, taxes (how they are paid) property maintenance planning.
A Job done right is why "Dumbrell Real Estate" is your first choice as your Buyers Exclusive Agent!
Call 250-248-9996 or email firstname.lastname@example.org for a confidential appointment.