If you’ve already done the legwork discussed in Step 2, you are one major step closer to obtaining a mortgage. Still, securing a mortgage is more complex, and often more expensive, then many consumers realize. There are numerous documents and details that must come together in a short period of time.
Closing Costs and the Truth in Lending Statement
There are various costs associated with a mortgage. These might include an appraisal and points, a fee based on the amount of the loan. Depending on the amount of your down payment, you may also be required to pay for mortgage insurance, a policy that protects the lender if you default on the mortgage. To help you see everything you’ll be paying for the home over the length of the mortgage, you should receive a Truth in Lending Statement, which is a federally required good-faith estimate of all the costs associated with the mortgage.
Mortgage Loan Interview Application Checklist
Lender requirements differ, but the following list includes the most common items that you and any co-borrower will need to supply to your lender. If you were pre-approved for a mortgage, you may have already completed some of this process. Your application will probably be approved faster if all required documents are submitted at the same time.
- Social Insurance Number(s) and Birth Date(s)
- Photo Identification Card
- Paycheck(s): most recent pay stub showing year-to-date earnings
- T4 or T4A Tax Forms: for the past two years
- Employers: names, addresses, and telephone numbers of any employers over the past two years
- Accounts: current statements of checking, savings, and other accounts
- Current Assets: Most recent statement of assets such as Registered Retirement Accounts (RRSP), employee retirement accounts, stocks, and bonds. If you own securities, your lender may require a current brokerage statement with names of the stocks, value per share, and number of shares owned. Liabilities: For each outstanding loan, provide the lender with the name and address of the creditor, monthly payment, and the total balance due. Liabilities include auto loans, student loans, credit cards, and other installment debt.
- Current and Previous Addresses: If you currently own a home, provide your new lender with the property address, current market value, current mortgage lender’s name, account number, current monthly payment d outstanding balance. If you rent, provide your current address, the name and address of your landlord or the management company, and the monthly rent. Provide the same information about previous residences. (Usually this additional information is only required if you’ve lived at your current address for less than two years.)
- Sales Contract: Bring along a signed copy of the completed Agreement of Purchase & Sale for the property you are buying, any amendments to the Agreement, a copy of the listing form for the property, the legal description of property, and receipts for deposit money or down payment deposits already paid.
Special Situations: Additional Information Required
Lenders will require some applicants to provide additional information under certain circumstances. Check the list below to see if any of these situations apply to you. Different lenders may have different requirements.
- Self-employed or compensated on a commission basis. Provide your T4A tax forms for the past two years, along with a current year-to-date profit and loss statement. Employment and business locations of self-employed must be independently verified.
- Separated or divorced. Provide a copy of your divorce decree and separation agreement, including details on alimony or child support payments. If you receive alimony or child support and would like the lender to consider these monies as income, provide proof of this income for the past 12 months.
- Old age and/or Canadian pension, disability, or any form of public assistance benefits considered as income. Provide a copy of an award certificate or a check from the issuing agency.
- Bankruptcy, foreclosure or any judgements against you in the past seven years. Provide information about the proceedings. For bankruptcies, documentation should include a copy of the bankruptcy discharge and a schedule of both debts and assets. Judgements against you should include a lawyer’s letter that explains the outcome of proceedings.