ARE YOU READY TO SEE IF YOU ARE FINANCIALLY READY TO BUY A HOME?

When you're ready to purchase below outlines everything you'll need to know about getting a mortgage, you should make sure you are pre approved or pre qualified before booking viewings with a Realtor........

Right now these questions are being asked because of COVID-19 but hopefully next year these won't be required anymore.

1. Have you been working for at least 3 months full time? 

2. Did you collect CERB at any time? If yes, are you back to work now?

3. Did you defer any credit card payments or vehicle payments?

4. Will your employers provide verification that you are off probation and have guaranteed full time hours?

5. Have you filed your income tax for 2019 and if any amount owing was it paid?

Below I have included information that you'll need to know about buying and also what documents you'll be asked for.

First of all buying a home requires minimum of a 620 credit score, at least 2 lines of credit for 2 years in good standing (2 credit cards, vehicle loan)

If you don't have 2 lines of credit that have been open for 2 years, sometimes a lender/bank will consider cell phone bills, utilities, rent that have been paid for at least 12 months and can be proven by a letter from utility company/rental company or even bank statements for 12 months to show payments going out of account.

If you'd like to fill out the application on your own go ahead or we can do it over the phone.  If you fill out please make sure to list all employment for the last 3 years. If in school for any of the 3 years list that in lieu of employment. If unemployed for any length of time in the last 3 years please list that as well.  Debts, list any credit cards or loans including vehicles (year/make/model) & then list them under assets as well with approx value. List the bank where you have accounts and amounts you have at time of filling out the application.

Down payment can be from your own saved funds or investment accounts or gifted from an immediate family member.  You must be able to supply 90 days of bank/investment statements to show where your funds have been or accumulated. If gifted, the family member must agree to sign a gift letter stating funds are not payable back and you'd just have to provide proof the gifted down payment is in your account.

Remember you also have to have funds for closing costs (lawyer/property tax adjustments/property transfer tax if applicable), and inspection cost if you choose to do one, usually about $2500 covers most of this.  Other expenses if your purchase goes through include home insurance, hook up fees for utilities etc.  You also have to have 2 pieces of valid government issued ID to produce when signing documents at the lawyer's office (Driver's licence, passport, provincial ID, PR card)

Under subject property on application fill in as much data on the home you are interested in if you have one in mind or just list the approximate price you are willing to spend on a home.

Please feel free to add additional pages if you need more room for your information than forms allow.

For a pre-approval I'll need the following sent to me:

- application & consent form

- most recent pay stubs (if we need to use over time you must have been at job 2 full calendar years, NOA's will be required for 2 year average)

When you submit an offer on the home the following information will be required:

- copy of purchase contract, property disclosure statement, title (if using a Realtor they will supply all forms but if it is a private deal I have forms available for you to use & fill out with Seller.)

- letter of employment from your employer stating you are full time, not on probation, what your salary or hourly wage is, & they need to provide a contact name/phone # as lenders are calling for verbal verification as well.

- Notice of Assessment 2018 &  2019 or if you haven't received your assessment back yet supply all 2019 T4 slips or if buying in 2021 we'll need 2019 & 2020.

- proof of down payment -  90 days bank statements, printout must show your name/account# and can not be altered (no crossing items out etc)

When you are ready to submit forms, they can be scanned/emailed back to me at terrik@paragonmortgage.ca .  If you can send in PDF format it is clearest for me to print off compared to picture files, if you don't have a scanner there are free phone apps that you can use.

If you haven't already, contact me to receive an application form.

Call 250-219-2323 or 780-518-7908 or email terrik@paragonmortgage.ca