Before you get started on your mortgage, you should make use of our handy pre-approved mortgage checklist. It can easily help you to avoid the stresses and blockers that many other borrowers have faced along the way.
If you don’t know this already, getting pre-qualified for a mortgage loan is the very first step you need to take, even before you apply for a mortgage and purchase the home of your dreams. However, before you can even get a pre-approval you have to ensure that you have all your ducks in a row first. Here’s our checklist to help you get started, and ensure you remain in the best position for securing your mortgage loan.
Mortgage Pre-Approval Checklist
Step 1. Gain access to and review your credit report. Your first credit report is free at Equifax.ca.
Step 2. If there are any inaccuracies within your credit report, file a dispute right away to resolve them. For example, and records of past due payments and collection accounts should only remain on your credit report for a maximum of 6 years from the date of last activity. Inquiries should only remain on your report for 3 years. If there are any accounts that haven’t been removed, file a dispute. If there are any other items that should be there, also dispute them.
Step 3. Gather all income tax returns and income proof (T4s) for yourself, as well as any co-applicants on the mortgage loan pre-approval application. If you’re self-employed than you can use your profit and loss statement, but ensure it shows the fiscal year-to-date.
Step 4. Prepare the money for your down payment, and closing costs, meaning ensure it’s already in the bank.
Step 5. Prepare your explanation for any gifted down payment amounts.
Step 6. Gather copies of 12 months worth of rental payment receipts, if you’re currently renting and a letter from your current landlord. The goal here is to prove that you’ve made consistent, on-time rent payments for at least one year.
Step 7. Get your ID in order.
Step 8. Provide additional proof of any other regular income such as, child support or benefits, or any other form of government assistance.
Step 9. Gather your banking statements and any statement for RSPs or RRSPs.
Step 10. Provide any and all documentation related to stocks and bonds.
Step 11. Bring with you, proof of property ownership of any kind.
Step 12. Be prepared to disclose information about negative financial issues such as a bankruptcy, debt consolidation loan, or a consumer proposal. You need to be able to explain what happened, why it happened, and what steps you took to correct it and prevent it from reoccurring in the future.
Step 13. Maintain your healthy credit score. To do this, avoid:
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Applying for new credit or allowing anyone to check your credit score
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Making any large purchases or take on new debt of any kind
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Cancelling current credit accounts
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Lowering your credit limits
If you do any of the above, and your credit score decreases during the pre-approval process, this can affect your ability to qualify for a mortgage.
For more advice on pre-approved mortgages speak to one of our mortgage agents, or simply apply now for instant approval.
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