You have already met with your mortgage agent to see whether you are eligible for a mortgage. Mortgage agents still can get preapproval mortgage letter. A preapproval letter will inform you and your Realtor® as to how much you are qualified to borrow and the mortgage rate and conditions. This does not mean you should put in a cash offer. A preapproval often has conditions that you must satisfy before the lender will lend to you. So use it as a guideline on what you will be able to afford versus an actual mortgage approval.
Here are nine things you are going to need when you meet with your mortgage agent to keep your application moving:
- Two pieces of identification: One piece of identification needs to have your picture on it.
- Employment letter: You will need to provide letters of employment outlining how long you have been employed with your employer and confirming your wages. This includes part-time positions in which you have been employed for more than two years.
- Pay stubs: Bring your two most recent pay stubs.
- Proof of down payment and closing costs: For example, a copy of your bank and/or investment statement must show that you have the funds to close the sale. If you were gifted the down payment from a parent or another family member, ask your agent for a ‘gift’ letter declaration. The person who gifted you the down payment will have to declare that they have given you the money with no return expectations.
- A copy of the agreement of purchase and sale: You should have a copy from your realtor.
- Sales listing: It is helpful because it will have information that the agent and lender need, such as lot size, plan number, square footage of the interior space, and property taxes.
- Lawyer’s name and address: Yes, you need a lawyer to close the sale of your property.
- Notice of assessments (NOAs) from the Canada Revenue Agency: Lenders expect you to file your taxes. A lender normally likes to see that you filed your returns for the previous two years.
- Credit check: At Unimor Capital Corporation, we will run the credit check free of charge for you and let you know what it states.
Thereafter, the mortgage agent will send all of these documents to the lender’s underwriting department. The sole responsibility of individuals who work in the underwriting departments is to scrutinize the documents for accuracy. For example, if you stated you make $18.00 per hour, but your NOA from 2016 shows that your income was only $16.00 will cause a delay in your approval. Once the documents are accepted, you can remove any financing conditions that you had on your sales offer and possibly go firm if there were no other conditions. Most lenders will provide you with an answer within 48 hours unless you have a complicated credit history.
It is best to be prepared, and I hope these tips help you get the mortgage that is suitable for you, with you living in the home of your dreams.
Have a good day.