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The second step after you've received your
pre-approval is to work with a good Real Estate Agent to help
you find the home of your dreams. Working with a Realtor that
you feel comfortable with is very important. Buying a home
is the single largest purchase you may every make, you want
to ensure your working with professionals that are sincerely
looking out for your needs and interests.
The third step after you found the home
of your dreams is to make a "conditional" offer to purchase.
A conditional offer means you will buy the property if those
certain conditions are met. At the very least your offer should
include a condition on finance, or COF (even if you did the
smart thing and got a pre-approval first) especially for high-ratio
insured mortgages (meaning you have less than 20% as a down
payment). The COF should be for at least 3 to 5 business days,
so that you and your mortgage broker have enough time to get your live approval.
The fourth step would be to waive the COF
by obtaining a "live" or "real" approval from the lender.
The following is a list of documents and information that
you will need to provide in order to obtain your approval
from the lender (note depending on the lender and situation,
documents may vary)
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- Copy of the accepted Purchase and Sale agreement
- Copy of the MLS listing (if listed on MLS service)
- Completed and signed application (unless you were pre-approved
with our office already)
- Confirmation of your down payment: it may be from your
savings, RRSP, equity from the sale of another home (copy
of sales agreement would be required if property sold
less than 3 months), or a gift letter for any money that
has been gifted
- If you are a salaried employee, a letter of employment
outlining your name, base salary, hours worked per week
and length of service along with 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, 2 years of
personal taxes (T1 Generals) as well as 2 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
Any questions?
Talk to one of our Mortgage Professionals today: 416-466-5858
Broker Lic. #10524
