Pre-approval

• You’ll get the chance to learn about and talk about your mortgage choices (fixed vs. variable rate, interest rates, payment options, amortization, etc.).
• We will take your application with your permission and ask you for information on your employment, income, assets, down payment (if any), and obligations.
• You will grant the lender permission to review your credit report.
• Upon conditional acceptance of your mortgage, we will let you know what paperwork (proof of income, proof of down payment, etc.) you need to provide. Your mortgage cannot be fully approved until all requirements have been satisfied.

Pre-approvals are granted subject to you maintaining good credit and are typically valid for 60, 90, or 120 days, depending on the lender.

• By simply looking at houses you can afford, you’ll save time house hunting.
• You’ll receive a clear estimate for a specific mortgage payment. You’ll know more about the amounts of your monthly payments and the size of your down payment.
• You will be given a pre-approval letter, which you can display to real estate agents and sellers when making offers.
• Because they are aware that you are serious and prepared to buy, real estate agents might provide greater service to you.
• When you make a buying offer, the seller is more likely to take it seriously because you have solid financial backing.
• You may have more negotiating power with a seller because of your pre-approval status.
• When you search for a new home, some lenders may offer you a rate lock, also known as a rate hold (for up to 120 days), so you won’t have to worry about interest rates increasing. If your lender’s fixed rate increases between the time of your pre-approved and acceptance, you are comfortable in the knowledge that your pre-approval rate is fixed.
• It’s important to bear in mind that a rate hold does not guarantee that you will be approved for the mortgage. You can still be turned down if you don’t meet their requirements, which could be because your financial situation has changed.
• There is no fee, and you are not required to accept the mortgage.
• Pre-approval streamlines the home buying process by letting sellers and real estate agents know you are a serious home buyer, especially in a market rife with competition.
• When you find a house you love, you can move quickly to make an offer!

• Credit checks are mandatory. Lenders base their pre-approval evaluation on a thorough investigation of your credit history.
• Extensive documentation regarding the borrower’s finances, credit, debt commitments, and employment is necessary.

• Assets
• Debt
• Income
• Identification
• Proof of employment
• Proof of capital to pay closing costs
• Expenses and financial obligations, including:
• Child or spousal support
• Student loans
• Lines of Credit
• Car loans
• Credit card balances
• Current address
• Previous address (if current address is less than 3 years)
• Current employment information (e.g., employer’s address, telephone number)
• Previous employment information (if current employment is less than 3 years)
• Sources of verifiable income (e.g., pay stub, employment letter, bank
• statement confirming direct deposit, investment statement)
• If self-employed, the last 2 years’ Notice of Assessments from your Income Tax return
• Value of properties, automobiles, investments, and savings
• Most recent statements for mortgages, loans and lines of credit
• Most recent credit card statements
• Estimated value of your home
• Housing expenses (e.g., property tax, annual condo fee, heating costs)
• Financial information for your co-borrower, if applicable
• Social Insurance Number (optional)

If applicable, you may also be asked to verify your employment by providing     your:

• Recent pay stubs to verify your wage or salary
• Employment letter from your employer, documenting the length of your employment and salary

Notice of Assessments from the CRA if you own your own business
Next, contact us so we can start the pre-approval process: