When buying a new home, one of the most important decisions a person must make is regarding choosing a mortgage professional. One of the best ways to find a mortgage broker to work with is by talking to a financial institution or a real estate agent. They can often point people in the right direction to at least narrow down their choices.
Once a person has decided on a broker they wish to use, it’s time to deal with the first appointment. The first appointment serves as an introduction and the first step in starting a mortgage loan application. Here are four of the most useful tips a person can follow to prepare for their first meeting.
1. Bring All Income Documents
One of the most important things a person can bring into their first meeting with a mortgage broker is proof of their income. This is necessary because it shows the broker that a person can cover all the costs associated with purchasing a home. Income documentation is necessary for pre-approvals as well as for the final loan application. The broker uses income documentation to get a full picture of a person’s financial situation, including calculating a debt-to-income ratio.
People who are employees at a business should bring in their two most recent T4s along with a copy of their pay stubs. For self-employed applicants, different documents are needed, including the two most recent tax returns filed, a business T1 General, and other income-related documentation.
2. Provide Details on Outstanding Debt
Although a mortgage broker will pull credit reports, it is still helpful to bring in detailed information on their debts. The reason why is that credit reports are only updated once a month, so providing the most current information is up to each individual. Having current information can also help a person spot any errors in their credit report.
Information that a person should bring into their mortgage broker includes all current debt balances, including lines of credit, credit cards, car loans, and more. If any debt has been paid off recently, bring in proof of the payoff payment.
3. Bring in Proof of Available Funds
Part of the mortgage broker’s job is to verify that the person has the necessary funds to complete the process. These funds are typically used for a down payment, along with closing costs and any other costs. These funds can be in the form of personal savings, or they can be investment accounts. It is up to the buyer to provide proof that they have these funds available for use.
4. Have Examples of Properties Ready
One of the most helpful things a person can do when meeting their broker for the first time is to have examples of properties they are looking for. This helps the mortgage professional in various ways, including knowing what type of property to search for. It also enables the mortgage broker to find the best properties that work with their current financial situation.
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