MORTGAGE BROKERS AND LENDERS – WHO DOES WHAT?
We have access to wonderful representatives for all the major lenders, as well as long standing mortgage brokers. Talk to us about connecting with these tried and true professionals.
The mortgage broker is the person or company who is your main contact throughout your loan. They are often able to work with a number of lenders, who actually provide the funds for the loan. Typically, the lender pays the mortgage broker a fee for acting as the intermediary and providing all the customer service.
FILLING OUT THE APPLICATION
There are standard forms to be completed when applying for a loan. Some mortgage brokers keep these on their website so you can fill out and submit the forms on line. The information will be verified and used to qualify you for your loan, so take the time to answer questions accurately.
DOCUMENTATION
The mortgage broker or lender will need copies of the documents you began gathering in the first phase of the loan process, including:
- Either 2 years of T-4s from your employer or 2 – 5 years of tax returns if you are self-employed (Notices of Assessment)
- Recent pay stubs
- 3 months bank and statements
- Brokerage, mutual fund and retirement account statements
- Proof of other income sources (alimony, trusts, rental income, etc.)
- Credit card statements
- Auto /boat / student / miscellaneous loans
- Drivers’ license or form of ID
- If you’re not a Canadian citizen, then copy of your residency status
- Copy of any existing mortgage debts if you are applying for a home equity line of credit or another mortgage
STAY IN COMMUNICATION
The lender will have an analyst, usually called an “underwriter”, crunch your numbers and verify your documentation to confirm your ability to repay the loan. Once you have an accepted Agreement of Purchase and sale, the lender or mortgage broker with forward the application to the underwriter for confirmation regarding your creditworthiness, and to evaluate the property on which they are lending. This is called the underwriting process, and questionsare bound to arise. Be sure to return your lender or mortgage broker’s calls promptly to keep the process moving forward smoothly.