The Most Critical Step to Hassle Free Mortgage Financing!
Without accurate and thorough document review in advance of issuing a mortgage approval your mortgage approval is not worth the paper it is written on. The US subprime crisis quite literally erased hundreds of billions of dollars from global capital markets and subsequently forever changed mortgage lending throughout the western world. Mortgage lending today is scrutinized at a new level and so are the documents required to obtain mortgage loans. In addition, Toronto and Vancouver mortgages tend to have larger loan amounts and thus require more levels of sign-off with lenders.
The good news is that in the over $2.1 billion dollars of mortgages our team has funded, we have never had a mortgage not fund when clients follow our award winning process – and we won’t let yours be the first. We will make sure you successfully navigate the lender documentation requirements by preparing you for this in advance. This allows us to provide competitive financing and save you the hassle and stress of a sloppy mortgage approval based on inaccurate information.
Depending on the type of mortgage you’re applying for and whether you’re an employee of a company or an entrepreneur (business-for-self (BFS) or self-employed).
Please keep in mind that for mortgages purposes medical professionals, partners at law firms, and people who own 20% or more of a corporation are generally deemed to be self-employed. Individuals who derive a significant portion of their income from an investment portfolio or trust (testamentary or inter vivos trusts) are often also required to provide supplementary documentation. Please also keep in mind that senior executives and people who have a personal taxable income in excess of $500,000 per year are most often subject to the same income review that business owners face.
Having all documents below ready at the time of application submission so they are ready for us will save you the greatest amount of time and frustration during the financing process.
Depending on the type of mortgage transaction and how you earn your income, you will need to organize and prepare a slightly different set of documents. Some are these documents are required prior to lenders issuing an approval and some are simply required prior to completing your mortgage file with the lender. Documents required will depend on which of the following categories you fall into:
- Mortgage for Residential Purchase
- Residential Mortgage Refinance
- Full Mortgage Pre-Approval (one you can actually rely on where income, assets, and liability details have been confirmed in writing)
In some cases additional documents may be required. Here are a few common scenarios:
- You own other properties:
- Annual Mortgage Statement – for each property owned
- Property Tax Bill – for each property owned
- You own real estate investment rentals:
- TMMG Real Estate Investor Worksheet – with all items 100% accurately completed and confirmed to be current (our office will provide this for you at the time of application or initial call)
- Lease Agreements – must be current, contain all pages and be fully initialled, signed, and dated to be acceptable as rental income verification to all lenders
- Tenant Acknowledgement – if the tenant is past the original term and now renting month-to-month
- You are separated or divorced:
- Separation agreement – must be signed, include all pages, and confirm amount of spousal and/or child support payments to be paid or received
When seeking to borrow hundreds of thousands of dollars, there is simply no way around the need to provide full supporting documents to lenders. After your “Mortgage Application” and “Client Intake Package” are completed you will be set up with your own secure online borrower portal which is used to submit all documents required throughout the process.
We look forward to serving you!