So you have been offered a private mortgage loan but there are conditions. Now you need to provide documentation to support your ability to qualify for your loan and hopefully keep your sanity in the process.
Mortgage Documents Rage
There is an internal green demon in all of us. He lies in wait as we calmly go about our lives, peaceably working on our daily tasks.
Then all of sudden the bank calls and says our income letter is illegible and SNAP! The hair bristles on the back of our neck, the dog narrowly averts getting kicked, and the expletives come a flyin’.
In our ever expanding age of information there seems to be a correlation to the amount of documentation required to secure a mortgage.
This can make a simple task become supremely frustrating when you have provided clear proof of everything and still have your bank ask you for that same document…one more time.
Calm Your Mortgage Minion
It is said that music can soothe the savage beast. Well I have learned over the years to sing sweetly to many frustrated clients who were about to put their fist through the computer or throw the printer into the fire.
My song is one of common sense. Of working to understand the nature of the lender’s request and to help translate that into notes that bring heart rates down and skin tones back to pink, brown, and olive. And it helps to move you from frustration to private mortgage funded.
Find out more about all of things you need to know about your Private Mortgage Made Easy
Mortgage Documentation Bliss
There is no private mortgage template that gives a ‘one size fits all’ requirements of a private lender. The paperwork varies depending who we are working with however typically the requirements are fewer than a bank mortgage.
Also, because these are common sense loans, often what you provide is sufficient and accepted even if there is a spaghetti sauce stain in the corner. Imagine that!
There are some generally agreed basics in the private mortgage documents that will cover most loans.
- Credit reports – these will be accessed through either Equifax or Transunion and you do not need to provide this as once you have given permission the report can be pulled from the credit provider.
- Employment information – there are private lenders who don’t require even this if you have sufficient equity in your property. Typically an employment letter and a pay stub or a couple months bank statements showing deposits can be sufficient.
- Property tax statement – it is important to a private mortgage lender that your property taxes are up to date or will be paid from the new loan as the municipality can place a lien or foreclose on your home for unpaid taxes.
- Income tax statement – it is also very important to some private lenders that your income taxes are up to date with Canada Revenue Agency or will be paid from the new loan. Again, the government can place a lien on your Ontario property in front of the mortgage and lenders don’t like this as this leaves them in a vulnerable position.
Important note…there are lenders who will complete loans with less or even none of these documents however from experience the cost goes way up when the lender is asking for none of the important information that would inform them to lower the risk on your loan.
Documents Done Mortgage Success
If only we could truly be like a green superhero and when our anger overcomes us we somehow end up saving the world. Unfortunately the opposite happens for most of us.
If we end up giving in to that green goblin we will be doing further damage to our family, our finances, and our future.
Keeping your cool (even if it is only with me singing to you) will save you time and frustration and get you to a state of mortgage bliss quickly. Let’s get started by reaching out to me below.