Purchasing a new Home is one of the biggest moments of your life, and we want it to be a positive, stress-free memory!
The first step in making that happen is by getting Pre-Approved before you go house hunting. This way, you know exactly what the maximum Purchase Price could be along with what the rough numbers would look like for your new Mortgage Payments.
The Pre-Approval process itself is about two forms, two pieces of ID per Applicant, and the file results can be received the same day, so the turnaround time is fairly quick.
To get the ball rolling on Options, we have two routes.
First choice is you can go to the Forms Tab above and print out our Mortgage Application Form and Disclosure Statement. They can be faxed, emailed or dropped off at our office.
Second choice is you can click the below link, and this will take you to our secure Mortgage Platform where the forms can be filled out online, and any required documentation can be uploaded into your personal Mortgage Account.
After the documents have been received, we will have answers and options back to you shortly!
Down Payment Cheat Sheet
Ok, this tends to be everyone’s least favorite part of buying a Home, and we mean everyone. It is because, depending on what is showing as the previous transaction history on your Bank Statements, a Lender can come back and ask for additional documentation.
For Personal Savings, a Lender will ask to see your last 90 day Bank Statements to verify the funds have been saved and sourced for the required timeframe.
If there is large money movement showing on the Bank Statements we have provided OR part of the funds have been transferred in from another Personal Account, a Lender will ask for confirmation of what the money movement was for and may ask to see the corresponding Bank Statements for your other Personal Account to verify the deposits came from that Account.
For Investment Funds, like RRSP Accounts, a Lender will ask for the last 90 day Bank Statement for the Investment Account up to and including the day the funds are withdrawn from that Account.
They will also want to see that funds have been deposited into your Personal Account. This means they will ask for the last 90 day Bank Statement for your Personal Account up to and including the day the funds are deposited.
When requesting funds from an Investment Account, sometimes the timeline for the funds to be deposited is hit and miss depending on what Financial Institution is holding the Investment. We recommend calling them and verifying their internal process for withdrawing the funds to ensure that there are no delays when you do find the perfect Home.
Also, the last 90 day Bank Statement has to be the complete last 90 day history from the date we provide the Bank Statements. Your online Banking will provide the old monthly pdf Statements, and then, we would need to provide a recent last 30 day printout to complete the full last 90 day history of the Bank Account.
For Applicants who are Employed, Job Letters and Paystubs have a shelf-life on the Lender’s side, and then, they are considered expired.
Most Lenders will accept them up to 30 days from the date showing, but a few Lenders only accept Income Documents when they are within 15 days of the date showing and will automatically request more current ones.
Income Verification is done in three parts.
- Obtaining a Job Letter that states the Income is either guaranteed Salary with amount or Hourly with minimum guaranteed hours and hourly rate.
- Obtaining a Paystub that shows the Income structure and year to date Income. The Lender will cross-check that the Paystub Income equals what the Job Letter is stating.
- Verbal Verification. The Lender will contact the Employer through the information listed on the Job Letter and verify the details in the Job Letter.
If your Employer or Manager is going to be out of town around the time you are purchasing a Home, please make sure to obtain a secondary Contact for the Lender to complete the Verbal Verification with, so no delays are caused.
After you have found the perfect Home and place an offer, you will usually have 10 business days to secure your Mortgage Financing.
This is more than enough time.. as long as you have as much of your required documentation gathered in advance. The standard turnaround time for a Lender to review documents once they have been received is 24 to 72 hours after they have been provided.
This basically means, the sooner you have the documents, the better!