Step #3 – Collect All Paperwork You Will Need
July 7, 2009 11:33 am Employed Persons, First Time Home Buyer, Proving income, Small BusinessOne of the most stressful parts for people in the home purchase is after the Offer to Purchase when people have to gather all the paperwork to send to the lender. The issues come when something does not jive with what was on the original application and people are left scrambling to find extra cash for the down payment or other paperwork. Why allow yourself this type of stress?
Gather the paperwork before you put down an offer to purchase. Give it to your mortgage broker so he can have a look at it to ensure it will meet the lenders expectations.
The following is what most buyers can expect to have to provide to the lender to purchase a home:
- Job letter – It will need to show:
- your job title,
- the day you started working there,
- your annual salary and
- the contact information for your HR department;
- Current pay stub – a paystub from the last month that shows your gross salary, deductions and net salary will be fine;
- Void cheque – this is so the lender will know where to withdraw the funds from after funding;
- Three month history of your down payment – bank statements, RRSP statements, GIC statements;
- Real Estate Lawyer contact information – so the lender knows who to send the final paper work to.
This list applies to most people who are purchasing their first home. Other paperwork may be added if you are separated, divorced, business for self, new to Canada, purchasing in a rural area, etc..
Gathering paperwork early reduces stress and gives peace of mind.
Check out the following links for more information on paperwork.
Employed persons – http://jasonpeatz.com/2008/09/income-verification-for-employed-persons/
Self employed persons – http://jasonpeatz.com/2008/06/small-business-proving-income/
