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Mortgages & Pre-approval

Pre-Approval

It is your responsibility as the buyer to ensure that you have enough money to complete a purchase transaction.  Most buyers will arrange to borrow money by way of a mortgage to help them finance the purchase of their home.  If you are arranging a mortgage, we recommend that you obtain a written pre-approval from a lender even before you start looking for a home.  A written pre-approval will tell you how much money the financial institution will lend you, at what rate, for what term, etc.  This will help you determine how much of a home you can afford.  Whether or not you have obtained a pre-approval, we strongly recommend that your offer to purchase be conditional for a short period on you being able to obtain written confirmation of sufficient and satisfactory financing from a financial institution

Lender Details Needed

After you have applied for your mortgage, your lender will require further information from you.  The lender’s requirements will vary between institutions.  Your lender may require any one or more of the following from you:

1. Proof of income, income tax returns, pay stubs, etc.
   
2. Proof of employment at a specific location for a minimum time period.
   
3. Proof that your expenses and debts are as listed in your application.
   
4. Proof that your down payment will not be from money that you borrowed.
   
5. The name, address, and telephone numbers of your lawyer.

Review With Lawyer

Your lender will usually forward mortgage documentation directly to your lawyer, who will complete the documents and explain them to you before you sign.  Be sure to review the written commitment from your lender with your lawyer to verify that the terms and conditions are the same as explained to you by your lender or mortgage broker.