Buying a home and becoming a homeowner is an exciting time in life that requires you to know a bit about the steps to get into your new home and the information you’ll need to provide your financial institution to get a mortgage.
Knowing what information is required can make you be better prepared for what is the largest transaction in most peoples’ lives.
Before preapproving you for a mortgage, a lender or mortgage broker will look at:
- your assets (what you own)
- your income (what you earn)
- your level of debt (what you owe)
Financial intuitions need you to provide the following:
- proof of employment
- proof you can pay for the down payment and closing costs and its source
- information about your other assets, such as a car, RV or boat
- information about your debts or other financial obligations
For proof of employment, you may have to provide:
- proof of your current salary or hourly pay rate (for example, recent pay stubs)
- your position and length of time with the employer (employment letter)
- notices of assessment (NOA) from the Canada Revenue Agency for the past 2 years
Your lender or mortgage broker may ask you to provide recent financial statements from bank accounts or investments. This will help them determine if you have the down payment ready.
Your debts or financial obligations may include your monthly payments for:
- credit card balances
- child or spousal support
- car loans
- lines of credit
- student loans
- other debts
At North Peace Savings and Credit Union, we pride ourselves on providing the best advice to our members and would be happy to help you on your path to home ownership.
Book an appointment today! Call 1-877-787-0361