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25 Jan

Document Requirements by Lenders

General

Posted by: Janette Roch

Today I am going to go over Document Requirements when getting a mortgage – Lenders today are SO incredibly picky about documents – it almost always takes people by surprise as to how much is required these days.  We do try to collect as much as we can at pre-approval stage, however many documents become stale dated within 30 days, so for the most part, we have to just prepare the client to have everything on their list readily available when the deal goes “LIVE” (Accepted offer)

ON A PURCHASE DEAL:

Requested from Realtor:

  • Contract of Purchase
  • MLS – FULL LISTING
  • Property Disclosure Stmt
  • All Addendums including Subject removal, and proof of Deposit Cheque

Requested from Client:

  • Income verification
    • Self Employed Sole Prop – 2 year T1 Generals and Corresponding NOAs
    • Self Employed – Incorporated – same as above PLUS 1-2 year Financials
    • Salaried / Hourly – Job Letter + most recent paystub, Verbal phone call or proof of direct deposit for 3 months, some may require NOAs to confirm no taxes owing
    • Retired/Pension/Disability – 2 year T1 Generals and Corresponding NOAs, T4A Tax Slips, proof of direct deposit for 3 months AND Letter(s) from Pension or Disability confirming amount(s)
    • Use of Casual/Bonus Income or Overtime income  – will require 2 year T4s and NOAs
    • In the case of an ALTERNATIVE income or ALTERNATIVE credit, we may be asking for up to one year of bank statements.
  • Down payment Verification
    • Sale of Property – Sale Contract + Mortgage Stmt; OR
    • Own resources – 90 day Bank Stmt; OR
    • Gift from immediate family member  – Gift Letter +proof of funds deposited
    • NOTE: Proof of Closing Costs = to approx. 1.5% Purchase price will also be requested and can be included in the documents above.
  • Appraisal (sometimes) – Economic Rent may be requested if rental income is being used
  • If other properties are owned  – RECENT Mortgage Statement/Property Tax Stmt/Tenancy Agreements, if applicable
  • If Separated or Divorced, we will require a fully executed Separation agreement and any child support / spousal support is factored into the liabilities
  • Child Tax Credit – Birth Certificates of any children under age of 12 ; CCB letter from the government confirming amount and some will require proof of deposit to bank account
  • Void cheque
  • Solicitor Info

 ON A REFINANCE OR RENEWAL/NO FEE TRANSFER:

Income verification, as above

  • Property Tax Statement
  • Most recent Mortgage Statement
  • Appraisal (or internal valuation system)
  • Use of funds (list of renovations/debts to be paid)
  • If Separated or Divorced, we will require a fully executed Separation agreement and any child support / spousal support is factored into the liabilities
  • Child Tax Credit – Birth Certificates of any children under age of 12
  • Tenancy Agreements, if rental income is being used
  • Proof of Fire Insurance
  • Void cheque
  • Solicitor Info

 As you can see, we definitely have our work cut out for us, that’s why those extra days on subject to financing clauses come in handy!  I am so grateful for my amazing assistant Nicole who is a “ROCH-STAR” at keeping the document flow going with our client, and ensuring timelines are always met with the lenders.