Buying a home is one of the biggest financial decisions you will make, especially if you are buying your first home. So it is important to know your current financial situation and ensure you buy a home you can afford while still enjoying your life. For that reason I always recommend all home buyers talk to your mortgage broker first to get pre-qualified for a mortgage and secure a rate hold before you shop for a home. This way you will know what range of home prices are best for you and deal with any potential pitfalls for qualifying beforehand.
To get pre-qualified for a mortgage you will need to review the following with your Dominion Lending Centres mortgage professional:
Personal information, including identification such as your driver’s license, marital status, birth date and social insurance number (for credit purposes).
Details on your source of income (job or self employment) and proof of your hourly/salary, job position and length of employment. If you own other rental properties, the proof of income from these properties will be required (lease agreements and/or tax returns).
Information about your financial assets (savings, investments, other properties, vehicles), current liabilities (loans, credit cards, other mortgages).
Your source of down payment (minimum 5% for owner occupied home and 20% for rental properties). Details on sources of down payment will be covered in next week’s blog post.
Proof you have enough money to cover the costs of closing the sale typically 1.5% of the purchase price.
If you are separated or divorced, have any history of financial difficulty. If you own a business or are on title to other properties – or anything that could impact your current financial situation, it is essential to share that information with your mortgage broker to ensure you can get pre-qualified for a mortgage. Through open communication I can get a better picture of your situation and advise you of the best options available. If we uncover issues that have not been disclosed, it could impact your ability to get pre-qualified for a mortgage, causing you undue stress and could cost you money in the end.
Once the application is complete and we have established the best options and plan moving forward, we can secure rate holds for you and collect all documentation required to ensure a pain-free approval process when you have an accepted offer.