Client asks: When someone makes an appointment with a Mortgage Broker to discuss their mortgage qualification status, in order to make the meeting as fruitful as possible, what kinds of information would they be advised to bring with them?
Joshua: I am glad you asked this question as this kind of forward thinking will create a stress free process on the back end. The documentation that is most important at the pre-approval/rate hold stage is as follows:
- most recent two years of Notice of Assessments (NOA's)
- most recent two years of T1 generals (if self-employed)
- most recent pay stub
- A good idea of the down payment amount and where it is located i.e. RRSP's, stocks, bonds, mutual funds, cash in the bank, equity taken from an owned property, gift money or other.
The rest of the application consists of information that most will have off the top of their heads, such as 3 years of living/employment history and any fine details that are forgotten can be worked out over the phone quickly after your client has left my office.
If your clients are looking at refinancing an owned property to extract equity for the down payment they may need to pay their penalty and possibly move their mortgage to another financial company. In a lot of cases clients could kill two birds with one stone. By restructuring debt and having enough of a reduction in interest rate, clients could save thousands of dollars on their current mortgage by the end of the term they are currently in. If this scenario is the case your clients should also bring in:
- most resent mortgage statement showing the mortgage balance, payment, interest rate and the maturity date of their term
- they should also phone their financial institute to see what their penalty payout is.
I will calculate where clients stand at the end of their term and show them whether or not they will save money or spend more money by restructuring their debt. It will then be the client’s decision how they would like to proceed. In some cases it is in their best interest to go back and negotiate with their current lender. I will advise accordingly and send them into the meeting with some tips on how they can squeeze the most out of their lender.
Hopefully this help....
Have a wonderful day!
Cell: (250) 886-7172