This mortgage pre-approval checklist can help you determine whether there are any red flags in your financial profile because you\u2019ll need to submit a lot of documentation. Unfortunately, the amount of documentation you\u2019ll need can be overwhelming at first \u2014 especially since you haven\u2019t even found a home yet!<\/p>\n\n\n\n
But even though there is a lot of paperwork involved in the process, pre-approval is worthwhile for its benefits. So, to make your pre-approval process a little more bearable, here\u2019s what documents are required for mortgage pre-approval and a checklist.<\/p>\n\n\n\n We\u2019ve broken up this mortgage pre-approval checklist into five sections:<\/p>\n\n\n\n What You\u2019ll Need<\/strong><\/p>\n\n\n\n If you\u2019ve never worked with this mortgage broker or financial institution, you\u2019ll need some basic information, including a copy of your photo ID, to prove you are who you say you are. In addition, if you\u2019re applying with someone else (your co-applicant), you must both submit a photo ID.<\/p>\n\n\n\n What You\u2019ll Need<\/strong><\/p>\n\n\n\n What You May Need<\/strong><\/p>\n\n\n\n One of the main determinants of how much mortgage you can afford is your income. With that in mind, you can expect your lender to ask you how much you make and ask you to provide proof of that income. Usually, you\u2019ll need a pay stub showing your income, but occasionally, you\u2019ll need additional information.<\/p>\n\n\n\n For example, your lender may ask for a letter from your employer confirming your title, how long you\u2019ve been at your current job, and your salary. If you have income from sources other than employment, you must also provide documentation to secure mortgage pre-approval. For example, if you receive child support or spousal support, these amounts will need to be documented.<\/p>\n\n\n\n If you\u2019re self-employed or earn money from a side hustle or freelance business, you must provide proof of that income. In most cases, you\u2019ll need to provide two years of income tax returns that prove your income and two years of Notice of Assessment<\/a> documents. The two-year requirement is to ensure your income is stable enough to cover a mortgage, and most lenders will use your average income between the two years.<\/p>\n\n\n\n Remember that all applicants for the mortgage need to provide income statements, including any co-signers.<\/p>\n\n\n\n What You\u2019ll Need<\/strong><\/p>\n\n\n\n What You May Need<\/strong><\/p>\n\n\n\n Another huge factor determining how much mortgage you can afford is your home’s down payment size. To help verify this, your lender may require you to submit bank statements showing the balance of your account where you keep your down payment. You don\u2019t need to provide paper statements. Instead, you can save your account activity as a PDF.<\/p>\n\n\n\n If your down payment is in an RRSP, you may need to submit 90 days of statements to prove that you can withdraw that money under the Home Buyer\u2019s Plan (HBP).<\/p>\n\n\n\n If a friend or family member has gifted a portion or all of your down payment, you may need to provide a letter signed by them affirming that the down payment is a gift, not a loan.<\/p>\n\n\n\n Finally, suppose your financial situation is less than ideal. In that case, your lender may ask for bank statements showing balances in your other accounts, including your chequing and savings accounts and registered accounts like TFSAs and RRSPs.<\/p>\n\n\n\n What You\u2019ll Need<\/strong><\/p>\n\n\n\n What You May Need<\/strong><\/p>\n\n\n\n![\"What](\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2022\/04\/Pre-Approval-Checklist-1024-\u00d7-667-px.png\")
<\/figure>\n\n\n\nWhat Documents are Required for Mortgage Pre-Approval?<\/h2>\n\n\n\n
Identification<\/h3>\n\n\n\n
Income<\/h3>\n\n\n\n
Assets<\/h3>\n\n\n\n
Debt<\/h3>\n\n\n\n
![\"Mortgage](\"https:\/\/www.zolo.ca\/blog\/wp-content\/uploads\/2022\/04\/information-need-for-mortgage-pre-approval-1024x576.jpg\")
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