What it is:
How do you know that you are pre qualiﬁed for a mortgage and how far does your purchasing power go? The banks and a mortgage broker will qualify you with different methods. To be sure that you are truly qualiﬁed and to understand your maximum purchase price you will have to ensure that the following things were done by your Mortgage Broker.
Why it is important:
This is very important to ensure that you are not out viewing homes that you do not qualify to own. A full application must be completed with the following details: Ensure a credit check is pulled to determine your beacon score, if there are any outstanding collections that you do not know about and veriﬁcation of all your trade lines. The lenders will want to see two active trade lines in goods standing for a minimum of two years.
Your income will be veriﬁed by providing your Mortgage Broker with the following documents: Letter of Employment, Pay Stubs, Past two years T4’s, Past two years Notice of Assessment. If you are incorporated then you will need to provide a full two years of Financial Statements for your company. As a commissioned earner or sole proprietor your income will be veriﬁed with a two year average including your T1 Generals. If you have any money outstanding to the Canadian Revenue Agency you must pay them prior to getting a High Ratio Insured Mortgage.
Conﬁrmation of down payment and closing costs will need to be veriﬁed by a 90 day history from the bank account that the funds are coming from. You will need a minimum of 5% down payment and 1% of additional funds for closing costs. The percentage will be based on the purchase price of the home. For example a purchase price of $300,000 you will require $15,000 for down payment and $3000 for closing costs.
Why you specialize in it
I am available daytime, evenings, and weekends to serve you. A bank sells a limited range of products and their representatives have varying levels of skill and education. I am a licensed professional with a diploma in business, specializing in mortgages. I can provide a different level of advice and mortgage strategy as I am not limited to the products of just one lender. I have access to over 30 lenders, giving you more choice, more unbiased advice, and better rates. I provide these services free of charge in most cases as I am compensated by the lender once the mortgage has funded.
Your time is valuable and in order to meet the expectations of your Realtor, the Vendor you are buying your home from and the Lender who is providing the mortgage, you need to ensure that you are fully qualiﬁed for the mortgage amount. If you do not like any surprises and you would like the transaction to go smoothly then you should be fully pre qualiﬁed by an Accredited Mortgage Professional. At qualiﬁcation you will be aware of the interest rates available to you, the monthly payments you should budget for, and any additional fees for closing costs will be discussed.
After your ﬁrst appointment you will understand the entire process from beginning to end with conﬁrmation of the terms and rates you will be subject to by the mortgage lender.