So, you have decided to either purchase your dream home or refinance your existing mortgage or take out a second mortgage. In either case, if you just take the following three steps, you will make the mortgage approval process easy for yourself and your mortgage broker. Your Mortgage Broker in Surrey will appreciate your preparedness.
Create your application in a word file. It is a good idea to have your application and update it every year or whenever there is a material change. Anytime you need to apply for a mortgage or a loan, just email the application to the mortgage broker and you just made the job easy for your mortgage broker.
Start the application with your full name, date of birth, Social Insurance Number, home address, email address, home phone number, cell phone number, etc. Make sure that you cover three years of home and employment history. Please make sure the addresses include the postal codes. It is very irritating for the mortgage broker if he has to look up the postal code.
Next comes the Employment History. Write down the full name of the employer, address, phone number, job title, yearly pay, position, and date of hire. If less than three years, please list the previous employers and their addresses, position, how long employed there, etc.
If you own more than one real estate, then create a word file, “Real Estate Owned” and list all the properties that you own. Each property should have the following details: Date bought, Purchase price, Current value, Mortgage owed, Monthly payment, Property Tax, Strata Fee, if any, and Rental income. Also, mention any rental income from the property that you live in.
Fear not as a mortgage broker or a bank cannot check your credit without your written consent.
Round up your last one month payslips; last two years T4’s or T1 Generals if you are self-employed; last two years NOA’s; financials, if you are self-employed; employment letter; last three months bank statements if you are looking to purchase a home; your ID’s; Property tax and mortgage statement if you are looking to refinance or get a second mortgage, home equity line of credit, etc.
Tell the Mortgage Broker your story, especially if you are on commission, contract, or self-employed. How exactly you make your income and list your fixed monthly expenses. Keep in mind the Mortgage Broker will need to see invoices to match the deposits made to your business account.
Also, let the Mortgage Broker know if you have co-signed for anyone.
That’s it. If you do the above, then any time you need a mortgage, you can apply for it with the push of a button. This is especially helpful if you are an investor.
Jeet Singh is a writer and President of Benevolent Bancorp.