Six Tips To Ensure You Have The Right Documents For Mortgage Financing
As a home buyer or investor, purchasing a property is one of the best and biggest long-term investments that you will make. We work to make the process as simple as possible which is also made possible by the quality and thoroughness of the documents you provide. Being a huge financial investment, you need to make sure that you have all your financial records and information in order, especially when you take on a mortgage. This will help with finding you the best mortgage product and ensure your mortgage approval process will go smoothly and efficiently.
As an experienced mortgage broker, Keith Uthe Demystifying Mortgages can provide the assistance you need and answer any questions you may have about the process of financing your home. But, before you take a plunge into homeownership, let’s make sure you have the required documentation to support your loan application. Follow these tips that I have outlined below to ensure you have the right documents for mortgage financing.
Tip #1: Get your documents scanned
I know scanning documents can be time-consuming and difficult if you do not have a proper setup or scanner for scanning documents at home that are not already in an electronic form. This is where a store like Staples can come in handy as you can take all of the documents into the business center and have them scanned for you. Otherwise, investing in a multi-feed scanner printer combo will be extremely useful, especially for real estate investors.
Tip #2: Don’t leave out pages or block information
Don’t leave out pages from documents because you think they don’t serve any purpose or blackout information because you don’t want it to be seen. Backing out information makes the document ineligible to be sent to the lender and will not be accepted by them. This also gives the impression that you may have something to hide and could be detrimental to your approval. If a document says there are four pages, ensure your scan contains all four pages. Skipping pages is one of the most common problems faced when applying for a mortgage, and it creates more work for everyone. So, don’t try and guess what is or is not important!
Tip #3: Get high-quality scans
Ensure that when you scan or take a photo of a document that the quality is such that it is readable. If a scanned page goes through a bit crooked or your camera angle is not directly over the top, this can cause the document to come out fuzzy and unreadable.
Tip #4: Properly label documents when saving and sending them as files
If the broker and the underwriter have to go through and figure out what a document is or what property a document is for, it takes that much longer to process the file. This results in lowering the priority of the file due to the time it takes to get ready for submission. The less organized your documents are, the lower on the priority scale it will end up. To make sure your file is as near to the top as possible make sure your documents are properly labelled.
Tip #5: Authorize your realtor and accountant
Make sure to authorize your realtor and accountant to send and share documents with your mortgage broker. They usually have original copies, which are the best quality. This will take the pressure off of you and also the number of documents you need to provide.
Tip #6: Provide accurate financial information
Whenever providing bank or investment account statements, they must include your name, the account number, the date period, the bank’s name. There are very specific federally regulated anti-money laundering and mortgage fraud guidelines when it comes to providing these statements and what is acceptable. All large sum deposits of $2500 or more must have a proven source, so if you are moving money between accounts or received a large deposit within the 90-day period, expect to provide proof of the source of that deposit.
These are just the tip of the iceberg, so don’t be surprised at what you need to provide as every borrower’s situation is unique. The banks always want to say yes until you give them a reason to say no.
For more tips to gather the right documents for mortgage financing, reach out to Keith Uthe Demystifying Mortgages. I am an independent mortgage specialist with Mortgage Alliance Enrich Mortgage Group, Smith Manoeuvre Certified Mortgage Professional, Real Estate Investment Adviser, and a Legacy Certified Financial Life Planner in Calgary, servicing clients across Canada. I provide first-time home buyer mortgages, mortgage refinances, switch or transfer mortgages, debt consolidation mortgages, equity mortgage lending, construction mortgages, commercial mortgages, business financing, private lending, rental property financing, renovation financing, flip financing, spousal buyout mortgage, and Smith Manoeuvre mortgages. I cater to clients in Alberta and coast to coast across Canada.