You and your loved ones have decided that you’re in the market for a new home of your own. The necessary research into mortgage professionals in your area is done. You’ve made an informed decision on the broker you want to make an appointment with. You feel like all the hard work is done, but do you really have everything you need?
Getting ready for your mortgage appointment
Mortgage appointments can go a number of different ways. In general, it’s an opportunity to introduce yourself to your mortgage broker. During this appointment, we will discuss the information needed to start the mortgage application process.
After the initial appointment, you may need to schedule additional appointments to verify documents or fill out additional paperwork. However, to streamline the process, I’ve outlined some of the documents I ask applicants to prepare to ensure you are ready for your appointment. This will save you time, and headaches, so I think it’s worth it to get prepared in advance!
What should you bring?
Now that we’ve gone through some of what you’ll be going through during this appointment, what do you need to prepare?
1. Income documents
Your broker, and lender, will want to ensure that you are able to cover all of the costs associated with buying a house. Whether you are looking to get a pre-approval or have specific mortgage needs, the lender will need to know a bit more about your financial situation. Income documents help verify how much you make annually. The documents are used to calculate your debt ratios and used to determine the size of the mortgage you can qualify for.
If you’re traditionally employed, you should prepare your two most recent T4s and pay stubs. If you’re self-employed, you will need to prepare a few more documents. This might include your two most recent tax returns, business T1 General, or other income-related documents. For applicants that are self-employed, you should get in touch with me here. I can give you a list of documents to prepare for your mortgage appointment based on your personal situation!
2. Proof of available funds
Your broker is going to want to confirm that you have the available funds. These funds will be used for the down payment and other associated costs with buying a home, such as the closing costs. However, assets come in many different forms. Assets can include personal savings or your investment accounts like your RRSP or TFSA.
This is helpful if you are planning on leveraging the Home Buyers’ Plan (HBP) to use for your down payment on your home. You can read more about the HBP here.
3. Details of your outstanding debts
Your mortgage broker will pull your credit report as part of the pre-approval or approval process. It can be helpful to bring a list of your debt balances including credit cards, lines of credit, or car loans. Credit reports are updated monthly and some of your accounts may not be current on your credit report. By preparing your balances, you can validate your current financial position.
In addition to verifying your debts, you may find out there are some mistakes in your credit report. You should check your credit report at least once per year, but in the off chance you haven’t this will help you prepare for your appointment.
4. Property examples can be helpful!
Depending on your goals, finding some examples of properties you like can be helpful when meeting with your mortgage broker. If your mortgage professional knows that you are looking for a condo, they can work with you to set realistic expectations based on your financial situation. This is beneficial when you’re getting a pre-approval to make sure you know your budget before spending a lot of time getting attached to a property you cannot afford.
5. Questions and curiosity!
Your mortgage broker may require more documents and information for your appointment. So, it’s important to ask before you show up for your appointment. With the busy real estate market in Barrie, having your documents in order is important. This can sometimes mean the difference between getting that newly listed condo and missing out.
In addition to this, you should prepare a list of questions to ask your mortgage broker. You should do a quick search online and make sure you’re comfortable with asking mortgage questions, big or small! By preparing a list of questions, you are sure to not forget when it comes time for your appointment. If you’re looking for more information you will find a lot of great information on the rest of my blog here! Don’t be afraid to ask for what you need, your mortgage broker will be more than happy to answer any questions you might have.
Now you should be ready for your appointment! After months (or years) of hard work, and some necessary paperwork, you are finally ready to enjoy the spoils of your labours. All that’s left to do now is move! If you’re looking for mortgage advice or would like to discuss a pre-approval, you can give me a call at (705) 333-4338 or get in touch with me here!