We begin this section with a caution, as it has become more
and more prevalent that in today's day and age of computers
and internet banking that the pre-approval issued by some
of the lending institutions isn't worth the paper it is written
on. For the purpose of saving time and money, many lenders
will simply pre-approve a client based on the information
submitted on-line without actually requesting any form of
employment or down payment confirmation and many times not
even a credit bureau check being performed. We have heard
of stories where an offer to purchase has been accepted, with
no financing conditions because the client was under the assumption
that this pre-approval was legitimate and only to find out
that when the income was requested or the credit bureau was
accessed that the pre-approval was worthless.
We here at SAFEBRIDGE will review each and every
pre-approval request individually and make sure that
all the I's are dotted and T's are crossed, before any sort
of pre-approval is issued. We are very familiar with each
lenders requirements and what conditions to be wary of. This
is our job and we expect our consultants to be well versed,
so that they represent our clients with the utmost financial
knowledge.
We have prepared a short list of items that will be required
for a pre-approval, so if you are in the market for a purchase
or are simply looking to get a head start on the upcoming
renewal, then we would advise that you start to gather the
following documents. Keep in mind though that lenders will
be looking for personal information that is current –
in other words, less than 3 months old and in many cases less
than 30 days old. For reference purposes, here is a list of
items that will be requested when applying for a mortgage.
- A letter of employment outlining
your name, base salary, hours worked per week and length
of service.
- A recent pay stub and possibly your
last years T4 may be required
- If you receive the majority of your
income from commission sales, three years of personal
taxes (T1 Generals) as well as three years of notice of
assessment will be required to calculate an average…A
two year average may be used if the down payment is greater
than 20%.
- If you are considered self-employed,
three years of personal taxes (T1 Generals) as well as
three years of notice of assessment will be required to
calculate an average…A two year average may be
used if the down payment is greater than 20%.
- If you are self-employed and you
have incorporated your company, some lenders will also
ask for three years business financials and three years
business tax returns along with the three years T1 Generals
and three years of Notice of Assessments
- Social Insurance Number
- 3 year history of your employment
and residence status
- Banking information
- Have a list of your assets and the
balances handy
- Have a list of your liabilities
and the balances handy
- Explanation for any past credit
problems and the documentation to support it. (Many lenders
have created products that take these items into account,
so don't be discouraged that you can't obtain a mortgage
through your bank – we work with many lenders that
will approve your mortgage even if your credit isn't as
strong as it could be. We will provide you with all your
options)
Broker Lic. #10524
