Your 2020 Homeownership Resolution
A new year is a time to set goals and have a fresh start, but it can also be hard to figure out where to begin.
If buying your first home is your 2020 New Year resolution, here is a list of documentation you’ll need to ensure a smooth mortgage process.
Step 1: Best if you started assembling your income tax documents early.
For those self-employed include the last two years of T1 Generals.
Step 2: Ensure all the information is accurate and up to date on your credit report.
Your credit report includes more than just personal information. It also shows how many times you applied for credit and if you have had any collections or bankruptcies.
Step 3: Now is the time to determine how much you would be able to borrow.
A quick, simple process is the Canadian Mortgage app. The app’s pre-qualification will give you a tentative assessment as to how much a lender is willing to lend you toward your home purchase. Without conducting a credit pull.
Step 4: Set up an initial phone call to go over your mortgage needs with a mortgage broker.
Your mortgage broker will ask questions about how much you’re looking to spend on a property, how much you earn, and how much you plan to put down on the property. You’ll be asked to provide personal information and identification such as photo ID and social insurance number (SIN) and some documentation such as:
- Letter of employment (no more than 30 days old detailing your salary, type of work, and how long you’ve worked with the company)
- Bank account and investment statements to prove your ability to pay the down payment and closing costs
- Documentation of any assets like a car
- Information about debt (such as student loans, car loans, and lines of credit or other financial obligations)
Your Broker will also access your credit records after obtaining your consent. Once your Broker has a good idea about what you’re looking for and your financial situation, they’ll hone in on your best mortgage options.
Following the steps we’ve compiled will ensure that you’ll have all your “ducks in a row” from the start. If all goes well, you’ll obtain a mortgage pre-approval with a rate-lock period (90-120 days). Taking you one step closer to buying your home and achieving your 2020 resolution.