If you’re looking to buy Real Estate, set the stage now. Speaking to a mortgage advisor is a critical component of your purchasing success. WHY? For starters, You have to be ready for the possibility of a multiple offer situation, Plus everything lender will need to verify your income.
Here are the most common forms of income to include:
Provide a recent pay stub and a “letter of employment” on the company letterhead that confirms a) your position, b) your annual salary, and c) the length of time you’ve been in your position.
COMMISSION, CONTRACT, PART-TIME AND SEASONAL EMPLOYMENT
Company letter and pay stub are required. Income must be consistent and can be proven with a two-year average of tax assessments or T4s. If the position is a contract one, a copy of the contract and any renewals are required.
Assemble: a) two years of tax assessments, b) business license or registration, or articles of incorporation, c) your T1 general tax returns for the last two years, OR the last two years of accountant-prepared financial statements (if incorporated). TIP: If your income is difficult to prove, be sure to have a strong credit history and down payment.
A copy of the separation/divorce agreement and three to six months bank statements are typically required. This income should be less than 30% of your total income.
Provide a letter confirming permanent status along with a pay stub.
Some lenders use full employment income if the employment letter confirms a return date within one year.
PENSION, RRIF, INVESTMENT INCOME
Include your most recent tax assessment and T4A’s for pension income. There must be sufficient funds in the investment for the income withdrawal.
Are you ready to apply for mortgage pre-approval to purchase?