When I talk to potential clients, they ask me what information they would need to prepare to complete their home loan application. I have prepared this blog article because I thought it would help you prepare for our meeting.
The home loan application asks for information about the type of home loan you are applying for, as well as your personal financial situation.
To complete the home loan application, you (and the co-borrower, if you have one) must provide the following information:
Employment History: I need a 3-year history of where you work (have you worked), including address, your job title, and income
Income: how are you paid?
• Per hour
• Salary
• Do you earn overtime or bonuses?
• 100% commissions
• Self employed
• Permanent pension income
Where you live now? I need a 3 year history of where you live (has lived). Do you rent? Or own?
Do you own your current property? I need the residence information plus the information of the current mortgage holder.
Debts – What are your current debts/liabilities? Your own debts plus any you co-signed
• Credit cards
• Bank loan, car loan or lease.
• Alimony or child support obligations
• Any bankruptcy history
• Any legal action in which you are involved
• History of foreclosures
Citizenship Status: There are a variety of loan programs depending on whether you are new to Canada, permanent resident, non-permanent resident, US non-permanent resident.
Assets
• Current value of RRSP’s
• Stocks and bonds, mutual funds
• Tax-free savings
• Savings
• Value of the cars you own
• Value of other major assets (large ship)
• Value of other property you own
Down Payment – What is the source of your down payment and closing costs. How much will you put?
• Will you provide it from your own savings?
• RRSP
• Receive a gift from a member of your immediate family?
• Did you borrow it from your line of credit?
Paperwork
For our initial meeting, it is ideal if you have your last two years of tax returns and/or assessment notice and a current pay stub. Making sure we accurately establish your gross income will prevent stress and frustration when you’ve found the home you want to buy.
The reality is that in order to do my best for you as your mortgage planner, to make sure you get approved and get you the best mortgage terms, conditions and rates available, I need to KNOW YOU. Once I get to know you and your financial needs, goals, and background, I’ll be in a better position to help you achieve your goal of home ownership and investing. I will advise you on your options and the best mortgage rates, terms and conditions available to you.
If you don’t qualify today, I will use the information you shared to create an action plan so you can reach your goal in the near future.
