Tag Archives: refinance

What paperwork will I need to get a mortgage approval ?

When it comes to applying for a mortgage, this is the second question I hear the most often, after ‘what is your best rate?’ As not every mortgage is alike, neither are all the requirements. Having said that, there are some documents that every mortgage approval requires and below is a list of the most commonly requested ones.
 

  1. Credit report

Usually the mortgage professional you’re working with will order your credit report and submit it to the lender with your mortgage application. It is rare for a lender to accept a credit report provided directly by the borrower, that they ordered themselves. If you have a limited credit history, your lender may allow you to provide an alternative credit source history such as a letter from your landlord confirming no missed rent payments, or confirmation of some other form of monthly payment that you’ve been making for 12 months or more, such as car insurance or a cell phone bill.
 

  1. Purchase contract

This document is usually only required by the lender when purchasing a property or under a special program when one person refinances a jointly owned property in order to buy the other party out, in the case of a relationship breakdown. Ensure the offer to purchase documents are clear and easy to read as your lender will require a legible copy for their file, and often after faxing back and forth for changes and initials they are difficult to read. In this case, I may suggest also providing one of the earlier versions of the offer to the lender for clarity. Some lenders also request confirmation you have removed all conditions that were included in the contract such as a financing waiver or inspection waiver. The lender will also require the MLS listing sheet for the subject property you are purchasing, however, if not available, you can provide the property details.
 

  1.  Downpayment confirmation

This documentation requirement varies depending on the source of your downpayment funds. For money you have saved over a period of time, the most recent 90-day transaction history is usually required. Do ensure you can also provide details and history of any large deposits made into that account during that period. Most lenders will not accept documents where anything is “blacked out,”and you must also ensure you confirm ownership of the accounts by providing both the account numbers and names for those accounts. For gifted funds, expect to provide a gift letter from an immediate family member as well as proof the funds have been deposited to your bank account. There are other eligible sources for downpayment and I encourage you to speak with your mortgage professional about the specific document requirements you will be required to provide based on where the funds are coming from.
 

  1. Income confirmation

The exact requirements depend on how you are employed; however, you can expect to be asked for some sort of documentation to verify you can make your mortgage payments. Requested documents differ for borrowers that are employed versus self-employed. For employed borrowers, you will be asked to provide a job letter and recent pay stub and you also may be asked for at least 2 years Notice of Assessments or T4’s.

For self-employed borrowers, the document requirements vary depending on the lender you are working with as well as the program you are being approved under. I suggest speaking with a mortgage professional about what your specific financial situation and requirements. Do keep in mind that the programs available for self-employed individuals vary with the different lenders and if one lender declines you, another one who has different rules may very well approve you. Also be advised, a good majority of the programs for the self-employed request you to confirm you have no personal income tax owing to Canada Revenue Agency for the previous tax year.
 

  1. Proof of Identification

This document is required to verify your identity and also to ensure the correct spelling of your full legal name. It is important the information on the document is current and accurate. While this is not always mandatory at time of approval, you will be asked to provide proof of identity at the lawyer’s office. Lenders have different forms of acceptable Identification, so find out from them what is allowable and what they won’t accept.
 

  1. Social Insurance number

All income tax paying Canadians have this 9-digit number also known as your SIN. Providing it when a lender is ordering your credit report ensures the report generated is for you and not for someone with the same or similar name as you. If you are in Canada on a work permit or have landed immigrant status, you would have a SIN number starting with a 9 and it is important for the lender to immediately be informed of this. Given the lenders all seem to have different rules and guidelines under their New to Canada programs you want to know right away if you need to apply for a mortgage through a different lender.
 

  1. Lawyer contact info

If your mortgage lender requires a lawyer to close your mortgage transaction, you will need to provide the contact details of whom you want to work with. Contact information includes law firm, phone number, fax number, office address and email address, if possible. Your realtor, lender or mortgage broker can refer you to a lawyer they know and have worked with if you don’t already have a real estate lawyer. Depending on your product type, you could be eligible to use a closing service in lieu of a lawyer at a reduced cost.
 

  1. Existing property information

If you are on the title of any other property or properties of any sort, you will likely have to provide documentation to confirm the monthly costs related to the property (s). As you own it, or even a part of it, you are ultimately responsible for 100% of its costs. These costs include the mortgage payment, property taxes and condo fees if applicable. If it’s a rental property, you could be asked for a copy of the lease agreement or your recent T1 general if you own multiple revenue properties. The lender needs to ensure you can qualify to support the new financing you’ve applied for as well as the costs of any existing responsibilities you may have.

The above list consists of the most commonly requested documents I see on mortgage approvals these days. Of course, there are exceptions to the norm. I can’t emphasize enough how much benefit you can get from working with an experienced mortgage professional of your choice. Not only can they guide you through the mortgage process, they can also work with you and the lender to come up with reasonable and attainable mortgage approval document requirements, or an acceptable alternative that works for all parties.

Do you have mortgage questions? Contact the Mortgagegirl at 780.433.8412 or info@mortgagegirl.ca. Stay in the loop by following on Twitter @Mortgagegirlca.

 

Source: Jackie Woodward Mortgage Broker
 

Message from Realtor Rosalie Drysdale

If you are needing information on a mortgage  you are living in the Edmonton Alberta Area,

please call Mortgage Broker Jackie Woodward at 780.433.8412 or info@mortgagegirl.ca.

Stay in the loop by Following her on Twitter @mortgagegirlca.
 

To those that live in the Winnipeg Real Estate Market , I (Rosalie)have worked with many good Mortgage Broker who can help you get the best mortgage for your life style.

 
Contact one of the Mortgage Professional below to help you with the progress and let the Mortgage Broker know who referred there services to them.

 

 

Mortgage Rates for Sept 15, 2015 — By Peter Paley

                                             

Peter Paley - Your Home and Mortgage Peter Paley

Come visit Realtor Rosalie Drysdale Website each week for my weekly Mortgage Rates.

Whether you are looking to purchase, refinance, or renew, we can help you decide whether a fixed or variable-rate mortgage will work best for your situation. Call today!

At Invis, we are always aware of the current environment and resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals.

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms

Posted Rates

Our Rates

6 MONTHS

3.14%

3.10%

1 YEAR

2.89%

2.29%

2 YEARS

2.84%

2.19%

3 YEARS

3.39%

2.34%

4 YEARS

3.89%

2.49%

5 YEARS

4.64%

2.59%

7 YEARS

5.30%

3.39%

10 YEARS

6.10%

3.84%

Rates are subject to change without notice. OAC E&OE

Prime Rate

2.70%

5 yr variable

2.05%

Looking at Purchasing that New Home, Needing a Mortgage,

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

Contact Peter Paley at Invis Mortgage

 

Peter Paley Mortgage Associate Send an EmailVisit Website

 

Understanding pre-approvals

By WM
 
Before you peruse online house listings or start viewing homes with a Realtor, it’s crucial to know what you can afford. While simple calculations can be done to determine what price range you should be shopping in, most Realtors and loans officers will encourage you get pre-approved for a mortgage loan by a lender.
 
What is a pre-approval?
 
If you’ve saved for your down payment and you’re looking to buy in the next three to six months, it’s time to get pre-approved.
 
“You should get pre-approved even before you meet with a Realtor and before you start looking at homes, so you start setting realistic expectations upfront in terms of affordability and you don’t get caught up looking at houses that you love but can’t afford,” says Bernice Dunsby, senior manager of home equity financing with Royal Bank of Canada.
 
In addition, getting pre-approved will allow you to act quickly once you do find your perfect home and it may give you more confidence when placing an offer.
 
When you are pre-approved for a mortgage loan, you’re beginning the application process for the mortgage. To provide you with a pre-approval, a lender reviews your income, the source of your down payment, your assets and liabilities, and inspects your credit report to determine your credit worthiness.
 
According to BMO First Home Essentials, Royal Bank of Canada, you (and other applicants, if applicable) will need to provide information this information:
 

  •  Photo identification
  • A record of employment such as a T-4 slip or a personal income tax return (if you are self-employed at least two years of personal income tax returns and financial statements)
  • A letter from your employer stating length of employment and current salary
  • The account numbers and locations of your bank accounts and investments
  • Confirmation of your down payment (if it’s a gift, you need to provide a letter from the gift-giver stating the money does not need to be paid back)
  • Details of assets, such as vehicles, investments, etc.
  • Details of liabilities, such as credit card balances, car loans, student loans, or lines of credit, co-signed or guaranteed loans, or any other monthly obligation you may be paying on an ongoing basis at the time of application
  • Name, address, telephone number of your solicitor/notary

 
After examining these criteria, the lender will determine the maximum amount you qualify for, and supply you a letter of pre-approval, which often guarantees an interest rate for 60 to 120 days. That letter is a commitment, subject to conditions, to loan you money.
 
It’s important to note that the amount is usually at the high end of what you could qualify for. It doesn’t necessarily mean you should search for a house that is listed at that exact price.
 
“Just because you’re pre-approved for a $600,000 mortgage, doesn’t mean you’re going to go out and try and find a $600,000 home,” says Dunsby. “You might be more comfortable, based on your spending habits and your current budget and anticipated increased expenses, looking at something in the $400,000-range.”
 
While being pre-approved doesn’t guarantee your mortgage application will be accepted on a specific property, it does speed up the process and may guarantee you a rate on a fixed mortgage for a specified time period. If rates fall, you’re still guaranteed the lowest rate available on a fixed mortgage during the guaranteed rate period.
 
However, guaranteed rates are not always provided with pre-approvals, since not all lenders provide a pre-approval product.
 

Are you looking to buy a home or invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

 
Not all created equal
 
While the pre-approval process is intended to give you peace of mind during your home search that when you find that home you will be able to pay for it, sometimes what you’re getting is a pre-qualification. It sounds similar, but it’s very different.
 
In a pre-qualification, a mortgage specialist will discuss what you may or may not be able to afford based on your current income and savings potential. In this instance, your financial information does not need to be verified and there is no credit application.
 
“We arrive at a ballpark figure, so you have an idea of what you could spend on a home,” says Dunsby, adding a pre-qualification can be done either face-to-face or over the phone.
 
“There’s so much that can go wrong with pre-qualifying,” says Marty Coubrough, president and owner of VERICO One-Link Mortgage & Financial in Winnipeg. “Even at the bank level, somebody looking to purchase a home will assume the bank is going to do their due diligence, and that they’re completely qualified, and the lender reps will give them the green light to go buy a house. The buyers don’t know there’s a problem until they put in an offer on the house, the offer’s accepted and the lender finds out a financing procedure wasn’t done until this far along in the process, and the buyers can’t get the house.”
 
“Pre-qualification is just a discussion,” says Paul Gazzola, a mortgage planner with Mortgage Architects in Guelph. “I’ve seen a lot of situations where the customer says they’ve been pre-approved at the bank but really they’ve been pre-qualified and when they go to do their credit bureau, there are all these debts they didn’t mention that now jeopardize their pre-approval limits,” he says, and adds he sees this scenario happen at least two or three times a month because some banks only offer pre-qualifications as opposed to pre-approvals.
 
Part of the problem is that some lenders, including banks, no longer do full pre-approvals, says Victoria-based Greg Stanley, CEO and president of Home n Work Mortgages. After some lenders found out they were “getting shopped” as Stanley puts it, meaning buyers were getting pre-approved with them, but not following through with the loan, they decided it was no longer worth the time and expense to do it, he says.
 
“It’s a misuse of the word ‘pre-approval,’ by Realtors and brokers,” says Harold Kennedy, president and CEO of MorCan Financial in Toronto. “That’s what’s caused the buyer’s understanding of what they’re receiving to change.”
 
It seems ‘pre-approval’ has become a catch-all term for both pre-qualifications, based for the most part on unverified financial information, and true pre-approvals, which are based on verified financial information, where a credit check is done.
 
While pre-approvals are always subject to conditions, if you verify your financial information upfront, you’re that much closer to getting the loan, once the property you intend to purchase has been appraised by your lender and your credit history checked once more.
 
Some brokers, such as Stanley, shy away from getting a full pre-approval from a lender as some brokers will not want to flood busy lenders with pre-approval requests when they may not use one of the lender’s products.
 
“The lenders that have extremely low rates, they’re flooded with deals,” he says. “So the last thing they’re going to want to do is waste their time on something that may not come through.”
Stanley says that because pre-approvals are loaded with conditions, it shouldn’t matter if you have a pre-qualification or a pre-approval, as long as you keep the “conditional on financing” clause in your offer to purchase.
 
Dunsby says there is a place for both in the industry, depending on where you are in the home-buying process. If you’re thinking of buying in a year’s time, and you don’t have your down payment saved but just want to get a general idea of what you could afford based on your current income, than a pre-qualification may be an appropriate choice for you, he says.
 
“I would caution that in this type of marketplace, a pre-qualification really doesn’t stand for much,” says Dunsby. “The pre-approval is really where you’re taking that next step and starting the application process.”
To ensure you’re getting what you want, ask.
 
Provide documentation, request a full credit report, and see that the lender provides a certificate of pre-approval with a written commitment from the lender.
If you provide everything upfront, you should only need to worry about the value of the property, once you’ve put in an offer to purchase, says Coubrough.
 
Final approval process
 
If you’ve been pre-approved and your financial condition has not changed, the final approval process should be painless.
 
However, acquiring new debt since your pre-approval will jeopardize your ability to get the loan. Similarly, if at the time you applied you were employed and have since lost your job, your lender will have to re-do your application based on two people and determine whether or not you’ll still be granted a loan based on one source of income.
 
You’ll be asked to provide the offer to purchase and/or MLS listing with photo with the mortgage loan application to be submitted to your lender.
 
In all cases, the lender will have an appraiser conduct a home appraisal on the property you wish to purchase to ensure you didn’t overpay for the home. The property also has to meet Canada Mortgage and Housing Corporation (CMHC) or Genworth’s approval to have your mortgage insured should you have less than 20 per cent down payment.
Options
 
Should you encounter that you find a home, put in an offer which is accepted and cannot secure financing, don’t fret – there are options.
 
If your monthly debt obligation increased because you acquired debt, and you had originally selected an amortization period of 25 years, extending the amortization period to 35 years might bring your monthly debt obligation down to an amount you can afford, says Dunsby.
 
If you were anticipating a 20 per cent down payment and now only have 10, instead of losing the loan, you may get mortgage insurance, which will increase your monthly payment but not prevent you from getting the loan.
 
“If you were turned down because of the home, that may help you negotiate with the seller to get the price lowered or get something repaired,” says Gazzola.
 
In addition, if you get your house appraised, and it turns out you paid more for it than it was worth, you can appeal what CMHC or Genworth comes back with as a value. At your expense, you can hire another appraiser and hope that he or she determines you paid a fair price for the home.
 
Whether you receive a firm pre-approval or an unverified pre-qualification, nothing is written in stone and pre-approvals are always subject to conditions. But Realtors and mortgage professions will agree, it’s important to know what you can or cannot afford before you put in an offer.
 
Hot Tip!
 
The pre-approval process includes a review of your credit worthiness. Here are some tips that will help you maintain a good credit rating:

  • Make all loan payments and at least the minimum credit card payments on time
  • Pay your utility bills on time and in full every month
  • If you’ve never borrowed before, speak to your bank about applying for a credit card or an RRSP loan to help you build credit

Are you looking to buy a home or invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
 
Source: WhichMortgage.ca

Message from Realtor Rosalie Drysdale

Coming to the end of your term with your mortgage, needing to resign for the next five years. Contact one of the Mortgage Brokers from my website
 
http://999-rose.ca/wp/services/financial/
 
Contact one of the Mortgage Professional below to help you with the progress and let the Mortgage Broker know who referred there services to them.

 

Go ahead. Jump in ! By Peter Paley Mortgage Broker

                                           

Your Home & Mortgage Peter Paley
 

Go ahead. Jump in!

 
Thinking about buying your first home? This may be your golden moment.
 
Mortgage rates are still very attractive, and it’s a great season to shop for a new home. You probably have some good questions before you jump in to home ownership. How much downpayment do I need to save up? Is the best mortgage just the one at the lowest rate? Will I find a house I love at a price I can live with?
 
That’s good; this is the time to ask lots of questions. I have the answers you need to make an informed decision. There are so many options out there that often cause people to focus on finding the lowest possible rate, and figure that’s the best route to the best mortgage.
 
Not so. Rate is only one feature in any mortgage – and a low rate with the wrong features could have you paying thousands of dollars extra over the life of your mortgage.
 
That’s why so many first-time buyers tend to seek out a mortgage professional for advice; they are thinking hard about this big financial decision, and are very savvy about seeking out their options. I have access to dozens of lenders so I can find a mortgage tailored to your needs, with the right balance of rate and features to suit your situation.
 
While it’s important to be prudent, some first-time homebuyers can be a bit too cautious. I can assess your situation to help you determine if it’s the perfect time to jump in, and can pre-approve you before you start shopping for a home. Call today!
 
AN ATTITUDE OF GRATITUDEIn the rush and chaos of our everyday life, it can be hard to remember to be grateful for our good fortune. I am grateful every day I come to work! I get to help great people achieve their dreams of home ownership and financial security. I also feel it is a privilege to be a trusted mortgage-for-life professional, to be there through my clients’ mortgage years, from their first home onward. And I welcome their friends and relatives, helping them along on their homeownership journeys.
 
What are YOU grateful for?
 
Happy Thanksgiving!
 
Soon we’ll be gathering with those who are dear to our hearts to pause and give thanks for our many good fortunes, especially for the comforts of family, friends and home. These are the occasions that turn a house into a home and I’m honoured that so many will be celebrating in homes that I helped them achieve. From my house to yours …. best wishes for a great weekend!
 

Looking at Purchasing that New Home, Needing a Mortgage,

Contact Peter Paley at Invis Mortgage

 

Peter Paley Mortgage Associate Send an EmailVisit Website

 

 

Mortgage Rates for February 11, 2014 — By Peter Paley

                                              
Peter Paley - Your Home and MortgagePeter Paley

Looking at Purchasing that New Home, Needing a Mortgage, Contact Peter Paley

At Invis, we are always aware of the current environment and resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals.

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms

Posted Rates

Our Rates

6 MONTHS

4.00%

3.95%

1 YEAR

3.09%

2.99%

2 YEARS

3.14%

2.79%

3 YEARS

3.95%

2.89%

4 YEARS

4.74%

3.39%

5 YEARS

5.34%

3.34%

7 YEARS

6.35%

3.99%

10 YEARS

6.75%

4.39%

Rates are subject to change without notice. OAC E&OE

Prime Rate

3.00%

5 yr variable

2.60%

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

 

Peter Paley Mortgage Associate Send an EmailVisit Website