How to Get Your Mortgage Paperwork in Order
Buying a home is a time consuming process, and it’s not just because you have to find a home. Assuming you find a Realtor that you like, and he or she leads you to a home you love, then you still have to navigate the process of negotiation with the seller, the bank, and attorneys. This is assuming that you have your paperwork lined up and ready to go, which is a task in its own right, and the part we’re going to go through today.
To start, you’ll want to get a copy of your last two to three months worth of pay stubs from your employer. You’ll also want a copy of your latest tax return. If you are self-employed, you will need your last two years of tax returns.
You’ll probably need bank statements as well, to show that you have money to put down, and that you have enough in savings to keep paying your bills. Some banks will also require little things like life insurance statements and retirement account paperwork.
They want all of this for a few reasons:
- It proves that you are responsible and that you haven’t lied on your application.
- They can use this as proof in the event that you did lie and they have to sue you for fraud.
- They don’t want to waste time with approvals only to find out that you have to back out or don’t have money saved for a downpayment.
Of course, you’ll also need a copy of your credit report, which they’ll probably pull for you. Make sure that they give you a copy, as they are required to by law, even when not approving you for credit. Keep this on hand just in case something goes wrong and you have to shop for another loan.
If you have any outstanding collections or liens, you will have to pay those off prior to going into the closing, and the bank’s agent will want a copy of the receipt, or a statement proving that you’ve paid those bills.
Lastly, you’ll need your identification and potentially, your social insurance number (SIN), so keep those on hand and ready to go. In the end, getting your mortgage paperwork in order isn’t as difficult as it sounds, but it’s also very stressful and time consuming, because the bank will change requirements frequently before finally settling on a closing date.
If you want to go a step further and get a specific checklist for your home closing, use our free mortgage calculator & mortgage quote page to get in touch with local lenders. They’ll give you five free mortgage quotes, including requirements and specifications, that you can use to start preparing your mortgage paperwork. Furthermore, if you aren’t sure how much money to put down, try out the free mortgage calculator to play with the numbers and see how an extra $5k-$10k down will affect your monthly payments. It’s a great way to test the waters before making a commitment.