When I talk to potential clients, they ask me what information they need to prepare them to complete a mortgage loan application. I prepared this blog article as I thought it would help you prepare for our meeting.
The mortgage loan application requests information about the type of mortgage loan you are applying for, as well as your personal financial situation.
To fill out a mortgage loan application, you (and your co-borrower, if you have one) are required to provide the following information:
Employment History – Ask for a 3-year history of where you worked, (worked) including title, job title, and income
Income – How are you paid?
• Do you earn overtime or bonuses
• 100% commission
• self employed
Permanent retirement income
Where do you live now – I need a 3 year history of where you live (I lived). Do you rent or own?
Do you own your current property? I need residence details as well as information on the current mortgage holder.
Debt – what are your current debts/liabilities. Your own debts plus any debts you may have co-signed
• credit cards
• Bank loan, car loan or rent.
Alimony or child support obligations
• No bankruptcy history
• Any legal proceedings in which you are involved
• History of the mortgage
Citizenship status – There are a variety of lending programs depending on whether you are new to Canada, a permanent resident, a non-permanent resident, or a non-permanent resident of the United States
• The current value of the RRSP
• Stocks, bonds and mutual funds
• Tax-free savings
• The value of the cars you own
• Other major asset value (large boat)
• The value of other property you own
Down Payment – What is the source of the down payment and closing costs. How much will you put?
• Will you save it from your own savings?
• Receive a gift from an immediate family member?
• Borrowed it from your credit limit?
For our initial meeting, it’s ideal if you have the last two years of income tax returns and/or Notice of Assessment and current payroll fund. Making sure that you accurately state your gross income will avoid stress and frustration when you find the home you want to buy.
The truth is that in order to do the best I can for you as a mortgage planner, and to ensure that you get approved and get the best mortgage terms, conditions and rates available, I have to know you. Once I know you, your needs, goals, and financial background, I’m in a better position to help you reach your goal of owning and investing in a home. I will advise you of your options and the best mortgage rates, terms and conditions available to you.
If you don’t quite qualify today, I will use the information you shared to create an action plan so that you can achieve your goal in the near future.