What Documents Do I Need To Apply For A Mortgage?Admin
The very first thing to be done when deciding to buy a home is to secure a pre-approval for your mortgage. A mortgage pre-approval shows the buyer the value of the home they can best afford and the mortgage payments associated with the purchase prices. Furthermore, it also secures a mortgage rate for a period of time, normally from 1 to 5 years. You are not obligated to stay with the mortgage broker from whom you received your mortgage pre-approval, but most clients find it in their best interest to stay with us, especially because our pre-approvals are free. That being said, their are a few documents you must provide your lender in order to get your pre-approval:
- Down payment information – You will need bank statements from the past three months. If you are selling a home before you buy another one, a copy of the sale agreement is also mandatory. If the down payment was a gift from a family member or friend, you need a letter stating that as well.Once you are ready to pull the trigger on securing your mortgage, the following documents relating to your property of interest will be requested:
- Contract of Purchase and Sale Agreement
- MLS Listing
- Title Search
- Property Disclosure Statement
- Contact information for your notary
- Employment information – If you are self-employed, you must bring a copy of your T1 General and Notice of Assessment forms. If you are employed, you’ll require a copy of your most recent pay stub, your most recent T4, and a letter of employment from your employer stating your salary and duration of employment. The purpose of this information is to prove your competency to pay your mortgage.
Its important not to get your mortgage pre-approval mixed up with your mortgage approval. Like the pre-approval, a mortgage approval will contain all of the essential details about house you desire to buy. However, the mortgage approval will often include further details, such as full address, the purchase price, the closing date, and property taxes. Once your mortgage provider has all of these details, they will give you a mortgage approval as long as you demonstrate that you are qualified for the property you desire.
While Mortgage Alliance specializes in getting you approved, please do not assume that getting a pre-approval warrants an approval. Once you have a specific home in mind, the lender will want to confirm that the home or property meets certain standards before approving your loan. That being said, “When the bank says no, we say yes”, and therefore, the vast majority of our clients walk away happily approved for the home they desire.
If you need assistance with your evaluation, pre-approval, and approval, we can take you successfully through the whole process. Please do not hesitate to contact us with any questions or concerns!