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For example, frequently moving around or switching employers might indicate you can't hold a job or that your industry is in trouble, hence instability. Likewise, if there is some potential income instability (economic down turn for example) do you have other assets you could sell or savings to fall back on if you run into financial hard-times or has all the money been spent? Will you or would you bring in roommates to help pay the bills? Pending divorce or unpaid income or property taxes are other examples of conditions that lenders worry about.
Your job and ours is to show that you are a good candidate for a mortgage! If you think that you likely meet the requirements to qualify for a mortgage or think you are close and would like to discuss your situation in more detail, the first step to take would be to reach out to initiate a discovery call with one of us.
Be prepared to answer questions about your income, employment, tax situation, financial obligations, past credit behaviour, and your savings/assets. The goal is to determine whether your property objectives are realistic, how much you can borrow and whether you are ready to proceed with a more formal application. You can start by filling out our “Let’s Talk Questionnaire" and we will set up a time to call you, or you can start a conversation with us using the chat bubble that appears on most of our website pages.
Once your credit score has been pulled you may be asked to provide additional documentation such as monthly statements, loan agreements, or proof that an old debt was paid and closed. To prove that you have sufficient down payment available for equity in the property, you will need to provide a 90 day transaction history for all accounts that the money has touched.
Any large deposits over the last 90 days will need to be explained and traced. If you have multiple accounts with sufficient money for the down payment, it is easiest to provide the account with the least or most easily explained transaction history, even if in reality you plan to use money from elsewhere.
For refinances, the equity will be in your property already and an appraisal and your recent mortgage statement will be used to determine how much is available. - There is a wide variety of property documents that might be asked for depending on the nature of the deal. For purchases, the MLS listing and purchase contract are typically required.
In some cases an appraisal will be needed as well and there are usually additional documentation requirements for rural properties and condos. In addition to the documents above, you will be required to fill out an application, sign a service agreement, provide ID, set up direct deposits and auto withdrawals, and accept or waive various life and home insurance offers.
We can use the . framework to understand commonly encountered obstacles and why they present a challenge for mortgage qualification. This information can be used to make a plan to get you back on track or help you think about alternate ways to achieve your objectives. Commonly encountered challenges related to and debt include self employment or tip income that does not show up on personal tax returns, inconsistent or non guaranteed hours or earnings, insufficient job experience, excessive debt relative to income (especially car loans), outstanding tax liabilities, and various forms of support payments.
Reassessing property objectives to focus on what you CAN achieve often uncovers unconsidered options. The point of all of this is that mortgage finance is complicated and sometimes there are solutions for your situation that are not immediately apparent. A qualified mortgage broker with a systematic approach to understanding your objectives and challenges can help you navigate the complexities of real estate finance to arrive at a solution that works for you.
Ask for a letter or email summarizing the action items and a business card to keep track of your mortgage professional. Follow the advice carefully and accurately. Be patient and persistent and you will achieve your goals. Communicate your progress and form a relationship with your mortgage broker. In the same way that forming a relationship with a good doctor helps him/her provide better medical advice and achieve better health outcomes over time, the more we know about you and your situation, the better we can help you get a mortgage faster and manage the lifetime cost of it to get the most out of it. Learn more.
We succeed when you succeed, and you succeed when you know what you are doing. To that end, we strive to ensure that communication, education, and accessibility remain the cornerstone of our brand. Like a guide with a compass and a map, we're here to help you understand where you are and how to get to where you want to be.
What is a mortgage preapproval When you’re shopping for a mortgage, you can compare options offered by different lenders. Mortgage lenders have a process which may allow you to: know the maximum amount of a mortgage you could qualify for estimate your mortgage payments lock in an interest rate for 60 to 130 days, depending on the lender The mortgage preapproval process may be divided in various steps.
Different lenders have different definitions and criteria for each step they offer. During this process, the lender looks at your finances to find out the maximum amount they may lend you and at what interest rate. They ask for your personal information, various documents and they likely run a credit check.
Where to get a mortgage preapproval You can get a mortgage preapproval from mortgage lenders and mortgage brokers. Mortgage lenders Mortgage lenders lend money directly to you. Mortgages are available from several types of lenders, such as: banks caisses populaires credit unions mortgage companies insurance companies trust companies loan companies Different lenders may have different interest rates and conditions for similar products.
It’s important to be comfortable with the lender and the mortgage options they offer you, right from the start. If you switch lenders after signing your mortgage contract, you may have to pay a prepayment penalty. Make sure you understand the terms and condition of your mortgage contract. Mortgage brokers Mortgage brokers don’t lend money directly to you.
Some lenders only offer their products directly to borrowers, while some mortgage products are only available through brokers. Since brokers have access to many lenders, they may offer a wider range of mortgage products to choose from. Mortgage brokers don’t all have access to the same lenders. This means the mortgages available vary from broker to broker.
Mortgage brokers generally don’t charge fees for their services. Instead, they usually receive a commission from the lender when they arrange a transaction (Ottawa Carleton Mortgage Rates). The provinces and territories regulate mortgage brokers. You can contact them to confirm that a broker is licensed or to make a complaint. What to provide to your lender or mortgage broker Before preapproving you, a lender or mortgage broker will look at: your assets (what you own) your income your level of debt You’ll need to provide the following: identification proof of employment proof you can pay for the down payment and closing costs information about your other assets, such as a car, cottage or boat information about your debts or financial obligations For proof of employment, you may have to provide: a proof of your current salary or hourly pay rate (for example, a recent pay stub) your position and length of time with the employer notices of assessment from the Canada Revenue Agency for the past 2 years, if you’re self-employed Your lender or mortgage broker may ask you to provide recent financial statements from bank accounts or investments.
These standards will vary from lender to lender. Each lender sets their own lending guidelines and policies. A lender may refuse to grant you a mortgage if you have a poor credit history. Learn more. There may be other reasons. If you don’t get a mortgage, ask your lender about other options available to you.
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