MORTGAGE TYPES
First-Time Home Buyer
READY TO BE A FIRST-TIME HOME BUYER?
If you are planning to get a mortgage in the near future, it is best to be prepared, Mortgage Now Inc. is here to help! Being prepared and having the right documents and information ready to present to us when we first meet can save tons of time, speed up the process and make things go smoothly.
Information that Lenders Need
The following is a summary of what Lenders require depending on what type of job you have, keep in mind, we may need more information depending on your circumstance:
Salaried Employees
Job Letter – Confirmation of your employment needs to be on company letterhead, signed by the appropriate individual confirming the position being held and your wage. If you are a recent hire, the job letter should confirm that the probation period has been passed. Bonuses, car allowances, and other forms of remuneration should be mentioned if applicable.
Paystubs – Most recent pay stub shows your year-to-date earnings.
Hourly Employees
Job Letter – Verification is made on company letterhead, signed by the appropriate individual confirming the position being held and wage. If you are a recent hire, the job letter should confirm that the probation period has been passed. Bonuses, car allowances, and other forms of remuneration should be mentioned if applicable.
Paystubs – Most recent pay stub shows your year-to-date earnings.
T4’s
Commission Income
T4’s and/or Personal Tax Returns (T1 Generals) from the current year and the previous year.
Job Letter – Verification is made on company letterhead, signed by the appropriate individual confirming the position being held and wage. If you are a recent hire, the job letter should confirm that the probation period has been passed. Bonuses, car allowances, and other forms of remuneration should be mentioned if applicable.
Self Employed
Financial Statements
Notice of Assessments (NOA) – to confirm no taxes owing.
Personal Tax Returns (T1 Generals) from the current year and the previous year.
Factors to Qualify for a Mortgage
There are 4 main factors to qualify for a mortgage; stable income, a good credit history, making a sound choice on the property you are purchasing, and how much (if any) of a down payment you have. If you have any questions, please contact us to chat or set up a mortgage consultation appointment ..it doesn’t cost you a penny!
STABLE INCOME
Most lenders will require a Letter of Employment confirmation as well as 2 recent paystubs. They may also need the last 2 years of NOA’s (Notice of Assessments).
CREDIT HISTORY
Credit History is a piece of information that is always reviewed by lenders. We always pull a credit history when you apply for a mortgage or seek a preapproval so that we can determine which programs will best suit your situation.
PROPERTY
Property choices also impact the mortgage qualifying process, as the real estate is the lender’s security – if for some reason – you are unable to repay the mortgage.
DOWN PAYMENT
A down payment is not always required as there are mortgage programs that provide cashback incentives for qualified purchasers. If you have no down payment, you generally will still need to have some cash to put down for your real estate purchase deposit and for closing costs.
