In the past week, I've worked with three separate clients whose expectations where skewed regarding the mortgage financing they could get. Now I'm the first to admit, I can get tough mortgages approved. But getting a borrower approved with credit or income issues at the best discounted mortgage rate is unlikely in this mortgage market no matter how skilled the mortgage professional is.
BUT BEWARE! There are almost as many mortgage brokers out there as there are real estate agents. The barriers to entry for mortgage brokers/agents is very low, which means that there are more unskilled brokers/agents out there then there are skilled ones. That's why it's important when you call a mortgage professional, ensure they have the experience that can help you get qualified for a mortgage.
ANOTHER BEWARE! Ensure the mortgage broker is being realistic with you, not just telling you what you want to hear. I've had clients come to me from other mortgage professionals or banks that where pre-approved for a mortgage, and they've put an offer on a home, now they can't qualify for a mortgage. The main reason this happens is that the borrowers income or their credit history wasn't qualified properly.
Here's a short list of the documents that you'll need to provide to confirm your income. If you haven't been asked for these documents, you can assume that that your mortgage pre-approval isn't legitimate:
If you are an employee with a salary (this is the easiest):
- employment letter
- 2 pay stubs
- your 2011 Notice of Assessment (NOA) from Revenue Canada (to confirm that you don't have any outstanding income taxes)
If you are an hourly employee:
- T4 from 2012
- employment letter
- 2 years of Notice of Assessments from Revenue Canada
* Most hourly employees work overtime, with 2 years of the NOA's we can use an average income that's above your base hourly pay. This can help you qualify for more mortgage money.
If you are self-employed:
- T1 Generals for 2011 or 2012
- NOA's from 2011 and 2010
- articles of incorporation or a business license
*Stay-tuned for another article on qualifying for a mortgage when you're self-employed. Please be aware there are still good mortgage programs out there for individuals who declare low incomes because of tax write-offs when you are self-employed.
Call or e-mail me if you'd like to discuss your own personal mortgage situation or have had difficulty qualifying for a mortgage. I've helped just recently who have been turned down by their own bank.
Sandra
tel: 519-763-3900 ext. 1001
e-mail: lastovic.s@mortgagecentre.com
