Calgary Mortgages: The process of applying for a loan

Applying for Calgary mortgages can be an easy process or a hard one. The decision is really up to you.

Following is the paperwork needed when applying for Calgary mortgages. Getting all of this together before you contact a mortgage broker will make the process go smoother.

Note: The following are general guidelines. Check with your Calgary mortgages mortgage broker for specifics as they relate to your personal application process.

Calgary mortgages: Paperwork needed

Following is a checklist of the items you need when applying for a mortgage in Calgary.

Financial documents needed to apply for Calgary Mortgages

• Copy of most recent pay stub. This proves your current earnings, which is your most important asset when applying for a mortgage.
• Copy of T-4's. This proves your specific earnings over a period of time. Mortgage lenders need this to assess your total earning power.
• Bank Statements. Mortgage lenders need to know where your downpayment is going to come from. By verifying three months of bank deposits, they can also readily see your banking patterns. With mortgage fraud an ever-present concern, lenders look for large, recent random deposits which, to them, are a red flag indicating the money is not coming from you, but from another source.

Documents from other sources needed to apply for Calgary Mortgages

• Social Insurance Number (SIN #)
• Employment letter from most recent employer. This proves your employment and should outline the following: Your title, the number of hours you work during a given week, how much you are paid (usually stated as an annual amount), and your employer's name and address.
  Note: if you're been with your current employer for less than three years, you need to get a letter from your previous employer(s) as well.
• Financial Gift Letter. When applying for Calgary Mortgages, if you are receiving money as a gift from a relative or friend for your downpayment, you will need a 'Gift Letter' explaining this.

All funds necessary to complete a real estate transaction in Canada must be accounted for. This is to help prevent mortgage fraud in the Calgary Mortgages market.

Advice for the self-employed who apply for Calgary Mortgages

Self-employed individuals may feel as if they have a harder time obtaining mortgages. With the proper paperwork, this is necessarily so. Following is some general information for self-employed individuals who want to apply for Calgary Mortgages.

Length of time in business. Most Calgary Mortgages lenders require that self-employed individuals have at least a two-year history of operation.

In certain situations, this can be waived. Check with your mortgage broker to see if it applies to you.

Documenting Income: Most Calgary Mortgages lenders will take your last two years of income and average them together. For example, if you made $60,000 the year before last and $50,000 last year, your average income would be $55,000.

Again, check with our Calgary Mortgages mortgage broker to see which option is best for you.