Dennis Philps

In the fast-paced Edmonton Real Estate market, it is vital that every serious buyer secure a written mortgage pre-approval from their lender in advance of ever looking at properties.  This will reveal what price range is within your grasp and will lock in a guaranteed interest rate for a period of 90-120 days.  Make sure, in advance of April 19, that your lending institution match a current mortgage broker’s discount rate!

The documents that you should take to your lender should include:

(1) An employment letter from your company, dated and signed on company letterhead, which will indicate your employment history, the salary paid, the number of hours worked each week, the number of hours of overtime worked each week if applicable, and the employment prospects for the future.  The letter must be written after the company ‘probation period’ has expired;

(2) A current pay-stub which shows your year-to-date income;

(3) A T-4 slip for the most recent two year period together with your ‘Notice of Tax Assessment’ form;

(4) Copy of your current RRSP investment statement that could be used to verify a source of the needed 5% [or more] cash down-payment and/or closing costs of 1.5% of the mortgage;

(5) Copy ofyour previous three month’s bank statements;

(6) ‘Void’ cheque to use when deciding the account out of which the mortgage payment will be made;

(7) The name and address of your lawyer that the lender will use to forward mortgage documents to at closing;

(8) If you are a current homeowner, a copy of your most recent mortgage statement indicating the amount owing and the monthly mortgage payment amount.

Hope this is helpful.  Many thanks to Norman Summerton for these important ideas.