Thursday, January 14, 2016 / by Robert Fyfe
Five Critical Documents That You'll Need to Have Ready Before Applying for a Mortgage
If not done properly applying for a mortgage can be stressful and time consuming, but with the right preparation the entire process can be seamless. Here are five crucial pieces of information that almost any lender will require before approving a mortgage.
Tax Information From The Previous Two Years
One of the most important documents a borrower will be asked for is their tax return along with a signed T-4, which will allow the lender to contact the CRA directly for their version of the federal tax return to compare to the ones provided. This allows them to examine the documents for any sign of fraud.
Documentation On All Owned Assets
The mortgage lender will require proof of every current asset owned by the borrower. This will include any current real estate titles along with bank and mutual fund statements and documentation on current investments. Don't be shy, every asset owned is a better sign to the lender.
Documentation On All Owed Debts
On the opposite side of the coin, the mortgage lender will also want to be made aware of any current debt. All debts, from major student loans to minuscule credit card debts, will need to be documented and given to the lender. It's important to provide information on monthly payments that need to be made, even if it appears insignificant.
Two Years Of T-4s For Employed Borrowers
Almost every lender will require a Form T-4 for the previous business year to see how much income was earned by the borrower. Many will require at least two years' worth of T-4s to see if the income has been consistent.
Two Years For Self-Employed Borrowers
Alternatively, any self-employed borrowers will be required to provide profit and loss statements to show the current status of their business. Like T-4s, the lender may require documents showing profit and losses for at least two years if the business has been in existence that long.
Having all your documents ready in advance to applying for a mortgage can go a long way to helping the process go smoothly.