Looking for a Mortgage? What You'll Need to Get Started?
Toronto, Aug 01, 2007
Kuljit Singh, Accredited Mortgage Professional
Usually it takes days, even weeks to gather all the required documentation when planning to apply for a mortgage loan, so you'll want to be prepared when the time comes to hand over the proper documentation to your Broker/Lender
As preparing to buy a home can be very stressful, the last thing you want to be doing at the eleventh hour, is digging through piles of paperwork trying to locate last year's "Notice of Assessments" or your "Bank Statements".
By spending a little time getting organized early in the process, you'll be ready to hit the ground running when it's time to apply for the mortgage loan for your dream house.
One way to get organized is to start a home-buying file. Put checklists, sales brochures and other related information in the file, including credit data, loan documents, real estate listings, inspection reports, area maps, and insurance information.
For the initial loan application process, the Mortgage Alliance AKAL Mortgages Inc. recommends gathering all your pay stubs for the past month, information on your long-term debts (car loans, student loans, etc.), recent bank statements, tax returns for the past three years (especially if you're self-employed), proof of any supplemental income, records of any past derogatory credit history that you've paid off, and records of child support or alimony (either going in or coming out).
When applying for a mortgage (pre-approval or purchase) the following documentation is required to bring with you to your Broker's office:
Your Social Insurance Number
Driver's License
Birth Date
Most recent pay stub showing year-to-date earnings
Tax returns for past three years
The names, addresses and telephone numbers of your employers for the past
three years (If you already have job letters from your employer(s) bring with
you)
Bank name/location, account numbers and current balances of all bank accounts
Statements of current assets (RRSP, GIC's, Stocks and Bonds, etc.)
The value of your personal property (Automobile(s), furniture, Jewelry etc.)
All current loan creditor's names and addresses, as well as the monthly payments
and total amounts due
If you currently own a home, the address, current market value, mortgage lender,
account number, current monthly payment and balance due on the mortgage. If
you rent, the address, name and address of your landlord and your current
monthly rent. If you've lived in your current address for less then three
years, detailed information for your previous addresses (name, address, phone
of landlords)
If applicable, also bring:
A fully executed letter of sale and purchase (Offer) with receipts for the
earnest money deposit toward the property
For gift money, a signed letter from the donor stating that you don't have
to repay the gift
If self-employed, profit and loss statement and balance sheet for the past
two years
If divorced, a copy of your divorce decree or maintenance agreement along
with any amendments
A 12-month payment history of alimony or child support payments if the payments
are needed to qualify for the mortgage
If you own rental properties, your federal tax returns along with a schedule
of all real estate owned and the account number and address of the mortgage
company that holds the mortgages
If the property is rented, a copy of the current lease
By knowing what documents you'll need and getting them together ahead of time,
you'll likely be less stressed, you'll get through the loan application process
more quickly, and you'll ultimately be "one step closer" to owning
your house.
For more information, call Mortgage Alliance AKAL Mortgages Inc. at (416)
621-1300 or email at info@akalmortgages.com.