How to Get a Mortgage in Edmonton or Calgary?

Are you ready to take the leap and become a homeowner in Edmonton or Calgary? Congratulations! Owning a home is a huge milestone in life and can bring a sense of pride and accomplishment. But before you start searching for the perfect property, you’ll need to secure a mortgage. Here’s a step-by-step guide on how to get a mortgage in Edmonton or Calgary.

Collect your Income Documents

The first step in securing a mortgage is to gather your income documents. This includes your employment letter, recent pay stub, and the last two years of T4s. It’s important to do this first, as these documents can sometimes take some time to come in. Make sure you have all of these documents ready to go before moving on to the next step.

Choose a Mortgage Broker or Bank you want to Deal with

There are a variety of options when it comes to securing a mortgage, including banks and mortgage brokers. Ask your circle if they know anyone good, look at Facebook groups, or ask your realtor if they know anyone good. Do some research and choose a reputable and experienced professional to work with.

Fill Out an Application

Once you’ve chosen a mortgage broker or bank, you’ll need to fill out an application. This will provide your broker or bank with the necessary information to determine your eligibility for a mortgage. Be honest and thorough when filling out the application, as any discrepancies could negatively impact your chances of being approved.

Email the Requested Paperwork to the Mortgage Broker in PDF or JPEG Format

Your mortgage broker will require a variety of paperwork to process your mortgage application. This includes your income documents as well as any other financial documents such as bank statements. Make sure that all of your documents are in pdf or jpeg format and that your name and account number are clearly visible on any bank statements.

Bank Statements Must Have Name and Account Number on it

This may seem like a small detail, but it’s important to ensure that your bank statements have your name and account number clearly visible. This helps to verify that the statements belong to you and can help speed up the approval process.

No Document can be Cut Off or Blacked Out

Make sure that all of your documents are complete and legible. No document should be cut off or blacked out, as this could raise red flags for your mortgage broker or bank.

Employment Letter, Pay Stubs Must be from Within a 30-day Window

Your employment letter and pay stubs should be from within a 30-day window. This ensures that your financial information is up-to-date and accurate.

Ask your Broker to Submit for Pre-Approval to a Bank

Many do not do this and interest rates can go up! Some mortgage brokers may not submit your application for pre-approval to a bank. It’s important to ask your broker to do this, as it can help lock in a lower interest rate. If you don’t ask for pre-approval, you may miss out on a better interest rate.

Ask your Broker About Terms and Conditions of Different Banks

Different banks have different terms and conditions for their mortgages. Ask your mortgage broker to explain the differences between the banks they work with, so you can make an informed decision.

Ask if a Line of Credit can be an Option for you Along with the Mortgage (then you only have to qualify once)

A line of credit can be an option for some homeowners, as it allows you to access funds as needed. Talk to your mortgage broker about whether this is an option for you. If it is, you’ll only need to qualify for one loan, rather than multiple loans.

Shop for a Property with an Aggressive Real Estate Agent:

Once you’ve been pre-approved for a mortgage, it’s time to pick a kick ass agent that will get you a great deal on a property!

So that is it, step by step! Here is some more in depth details. Please watch the YouTube video about this as well!

First and foremost, it’s essential to gather all of the necessary income documents before you begin the mortgage application process. This includes your employment letter, recent pay stubs, and the last two years of T4s. It’s important to do this first because it can take some time for these documents to come in, and you don’t want to hold up the process by waiting until the last minute to collect them.

Once you have your income documents in order, it’s time to choose a mortgage broker or bank to work with. You can ask your circle of friends and family if they know anyone good, or check out Facebook groups for recommendations. Your realtor may also be able to recommend someone they’ve worked with in the past.

When you’ve found a broker or bank you want to work with, the next step is to fill out an application. Be sure to provide all of the necessary information, including your income, expenses, and any debts you have. This will help the broker or bank determine how much you can afford to borrow.

After you’ve filled out the application, you’ll need to email the requested paperwork to the mortgage broker in PDF or JPEG format. It’s important to make sure that your bank statements have your name and account number on them, and that no document is cut off or blacked out. Your employment letter and pay stubs should also be from within a 30-day window.

Once the broker has received all of your paperwork, they will submit it to the bank for pre-approval. It’s important to ask your broker to do this, as many brokers do not submit for pre-approval and interest rates can go up if you wait too long to secure your mortgage.

When you’re talking to your broker, be sure to ask about the terms and conditions of different banks. You may also want to ask if a line of credit can be an option for you along with the mortgage. This can be a good option if you only want to qualify once, rather than having to go through the qualification process separately for both a mortgage and a line of credit.

Once you’ve secured pre-approval for your mortgage, it’s time to shop for a property. It’s important to work with an aggressive real estate agent who will help you find the right property for your needs and negotiate a fair price.

When you’ve found a property you want to make an offer on, your realtor will email the offer and MLS to your mortgage broker. At this point, it’s important to talk to your broker about the features you want in your mortgage, such as a 20/20 option, and whether any banks you’re considering will register a collateral charge to your title.

You may also want to discuss options like cash back or purchase plus improvements, which can be a great way to finance home renovations or other expenses related to your new property.

Once your broker has submitted your application to the bank, you’ll receive a mortgage commitment. Your broker will send you the mortgage approval via docusign, and you’ll need to fulfill any conditions the bank has set forth.

These conditions may include things like providing additional employment letters, pay stubs, or bank statements. Once all of the conditions are fulfilled, your broker will email you to let you know that your conditions have been satisfied.

At this point, your broker will instruct your mortgage to the lawyer. The lawyer will call you in for an appointment to sign the necessary paperwork. Make sure you get a quote from the lawyer before you choose one, so you know what to expect in terms of fees and other expenses.

Overall, getting a mortgage in Edmonton or Calgary can be a complex process.