One of the most important roles a broker will
play in your approval process is assuring
all of your documentation is in order. Some
of the lending guidelines do have some flexibility,
so don't assume if you aren't a perfect fit
for the guidelines that you won't qualify
for a mortgage. There are so many variables
and one factor may tip the scales against
you, while something else may act in your
favour. Also, it is not always safe to assume
that everything calculates fine, so therefore
you are a "slam dunk". You probably
are, but?There are grey areas in mortgage
lending, just as in any other field and it
is important to keep this in mind when you
are playing around with mortgage calculators
and general guidelines. If
you are a salaried employee, most lenders
will require the following:
- LETTER OF EMPLOYMENT
- RECENT PAYSTUB
- PREVIOUS YEARS
T4
- CONFIRMATION
OF YOUR DOWNPAYMENT (If gifted
- a gift letter and confirmation funds
deposited into your bank account)
*The
amount of information the lenders require
can be based on amount of downpayment as
well.
If you are a self-employed
individual, most lenders require:
- 3 YEARS TAX RETURNS
- CONFIRMATION
OF DOWNPAYMENT
*Some
lenders have special programs for self-employed
people, so if you are self-employed or on
contract, it is best to ask your broker
for more details as there are many more
variables than with salaried employees.
*Your broker may
ask you for your documentation at pre-approval
stage. Providing your documentation does
not obligate you to the Broker (or the lender)
but does assure your approval status and
saves stress later on when you have found
a home you wish to purchase.
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