When you begin thinking about applying for a mortgage, it is important to discuss your down payment. All homes for sale in Canada require a minimum amount of money be paid before the sale goes through, and this is the down payment.
Most buyers are aware that they need to provide a down payment, but what you may not know is that money lenders check the sources where the money is coming from to see if it is acceptable. Below are a few pieces of information about this verification process to help you have a smooth mortgage application:
- Any money lender will ask for a 90 day history of the bank account that is holding your down payment money that includes your name, account number, and statement dates.
- If you are worried about the personal information included in your bank statements, note that mortgage professionals will ensure that your details are protected. You may not alter any documents in order to protect your safety, so it is important to trust the professionals that you are dealing with and provide them will full and complete documents.
- Any unusual deposits of a large amount made in your account need to be verified so that the lender knows the money is legitimate. Provide things such as signed gift letters, sale receipts, notices of tax assessments, or other official documents to prove where the money came from.
- Keep in mind that in addition to your down payment, you also have to prove that you have an extra 1.5% of the purchase price in your savings in order to cover closing costs such as legal fees.
- Once your money is confirmed, leave it where it is. The money should only leave your account when you go to complete the purchase. If you move or spend the money, or deposit more money, lenders have a right to ask for an updated statement and will re-verify your funds.
Applying for a mortgage can be overwhelming, but you don’t have to do it alone. Do you need extra assistance with your mortgage application? Contact me today for all your Brampton mortgage needs.
