How to Get Pre-Approved for a Mortgage: Documents and Information You Need
Getting pre-approved for a mortgage is an important step in the home-buying process. At Tammy Wandzura, Mortgage Broker, we want to make the pre-approval process as easy as possible. In this blog, we'll discuss the documents and information you need to get pre-approved for a mortgage.
1. Proof of income
Every application is unique. Depending on your employment will determine what supporting documents are required. This can differ depending on the applicant, time on the job, and how the applicant is paid. (employed/contract/self-employed/overtime etc). Typically for regular employment the minimum requirements would be Letter of employment, 2 recent pay stubs, and the last 2 years' T4 slips. We are here to assist and work with each client to prepare the file with any specific information or documents needed.
2. Credit report
Your credit report in Canada will be used to determine your creditworthiness and whether you're eligible for a mortgage. Our office will review your credit report to determine your qualifications and what lenders can support the request. It is important to have a strong credit profile. We will work with you to provide tips or suggestions if we see anything affecting your credit negatively.
3. Employment History
Your employment history in Canada will be used to determine your stability and ability to make mortgage payments. It's important to have a stable employment history and income to show lenders that you're a reliable borrower.
4. Down payment
The minimum downpayment requirement in Canada (for an owner-occupied home) is 5% of the purchase price, for homes priced up to $500,000. Over $500K and you are required to have 5% of the first $500K and 10% of the remainder. Any homes priced over $999,999 require a minimum 20% downpayment. Downpayment can come from Investments, Savings, a gift from an immediate family member, or a secure Home Equity LOC.
- Most recent 90-day history of transactions (3 months of bank statements) for any account(s) the funds have been saved in.
- Please note if you have multiple accounts (where day-to-day banking/transfers between accounts happen) we will need the 90-day history on those accounts as well (so we can trace the transfers)
- Please note any large deposits need to have their origin verified so we have the full paper trail of the funds in that 90-day period.
5. Other financial information
You may be required to provide additional financial information, such as bank statements or investment account statements, to show your financial stability in Canada. It's important to work with a mortgage professional who can help you understand the specific documentation requirements and ensure that you're prepared to provide all necessary information for your mortgage application.
Getting pre-approved for a mortgage is an important step in the home-buying process, and it's important to have all the necessary documents and information ready. Contact us at Tammy Wandzura, Mortgage Broker today to start the pre-approval process and take the first step toward buying your dream home.