The Mortgage Process

MORTGAGE PRE-APPROVAL—YOUR FIRST STEP IN PURCHASING A NEW HOME

Mortgage pre-qualification is a necessary first step if you are in the market to buy a home. It allows you to secure a rate from the lender for a period of 90-120 days and puts you in a position of power since most realtors will not accept an offer unless the client has been pre-approved for mortgage financing. It also enables you to negotiate the purchase price of the home with confidence knowing the amount of mortgage you qualify for. A Pre-Approval also enables your realtor to look for the home that fits your financial needs and situation.

A pre-approved mortgage is based on information you provide with your application and is subject to verification by the lender. Approval is always subject to conditions by the lender such as income verification and proof of your down payment. Therefore, it is important to provide the most accurate information possible in order for your broker to determine which lender I will submit your application to and where to obtain the best rate for you.

ABC’S OF BUYING A HOME

Application: Apply online or download a printable application form from my website www.jennstephenson.com and fax it back to 403.705.2056.

Mortgage Associate: Mortgage associate shops around for the best rate and mortgage solution for you.

Review Commitment: Mortgage associate reviews commitment via phone/fax or via email.

Approval: Client accepts offer. Submit to CMHC/GE or order appraisal.

Removal of Financing Conditions (if offer is subject to financing): Received CMHC/GE or received appraisal. Go over outstanding conditions with Client(s). Client(s) can now waive financing condition.

Documents: All documents should be in 10 days after Accepting Offer.

Lender: The lender will send the documents to your lawyer.

Lawyer: 14 Days Before Closing you should call your lawyer to ensure they have received your mortgage instructions and any outstanding monies owed for down payment must e paid to the lawyer with closing costs.

For Additional Information on the Home-Buying Process, download the Step-By-Step Guide from Canada Mortgage and Housing Corporation (CMHC).

REQUIRED MORTGAGE DOCUMENTS

Salaried or Hourly Employee Clients

1. Letter from employer indicating how long you’ve been employed with the company and what your gross annual salary is.

2. Recent pay stub

3. Salaried/Hourly Employee with overtime or bonus amount

4. Two years Notices of Assessment or T4’s to prove extra income

Self Employed or Commission Income Clients

1. Last 2 yrs Notices of Assessment (NOAs) which in addition to confirming income confirms that tax returns have been filed.

2. Last 2 yrs Financial Statements (if incorporated).

3. Last 2 yrs Statement of Business Activities if a sole proprietor.

4. Last 2 yrs T1 Generals (first two pages only).

Down Payment

If coming from personal savings, 3 mths of bank statements confirming the amount being saved.

If gifted, a signed gift letter is required. CMHC/GE requireds that the gift be deposited into your account 15 days prior to

possession of your new home.

If from the sale of your existing home, a copy of the Offer to Purchase and Waiver(s) with the corresponding Mortgage

Statements.