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A loan application is thorough and requires a lot of supporting documentation. It can be something of financial audit meaning applicants need to have their numbers in order if they want to get approved.

The information that will be required depends on the type of loan, and in some cases varies based on the applicant’s situation. For instance, a self-employed applicant requires more proof of employment and a first-time homebuyer could be asked to submit additional information.

Let’s review what information is generally required for a loan application.

Personal Information

Lenders need to know who they are considering so applicants need to provide a lot of personal information. This can include but is not limited to:

• Legal name(s)
• Date of birth
• Contact information
• Current address
• Current and past employers
• SIN

If you require a co-signer, then the borrower will need the same information for them as part of your application.

Credit History

You will need to a provide credit history to lenders, including a credit score. This will also help determine your interest rate and amortization options. This history provides insight into how you repay loans and your monthly debt load, both key factors to a lender.

It doesn’t matter if you’re applying for a mortgage, second mortgage, home equity line of credit, a car loan or a small business loan, you must submit your credit history to be scrutinized.

Appraisal or Inspection

For a loan to buy a property, you must pay for an appraisal or inspection. Once completed, the lender will ask you to submit the findings. The lender wants to make sure that you are paying for value and not overpaying for a declining or flawed asset. A lender is the one forking the bill for your property so they want to make sure its major systems are running and that it is a worthy investment.

Contact us today to learn more about the loan application process. We can walk you through everything you need to do and help you understand what your loan could look like with respect to interest rate and repayment.

Applying for a mortgage loan is a thorough process that requires an in-depth financial audit. After choosing a lender, borrowers should get their application in order and the best way to do it is by using a checklist.

A succinct checklist can help you procure and organize all the different documents you will need to get. This will help your application avoid rejection due to missing information.

Here’s a checklist you can use for an upcoming loan application:

Employment Documents

You will need to submit a recent pay stub or pay stubs. All employment documents should be written and signed by your boss or the human resources department. It must be within 30 days of your application submission and detail your position, seniority, salary, hourly rate, average number of weekly hours and whether you’re a full or part-time employee.

Seasonal and part-time employees might need additional documents to verify their income.

Property Documents

You will require the following with respect to the property you want to buy:

• The mailing address of the property
• Proof of down payment
• Signed mortgage agreement
• Sales contract outlining the offer
• Listing and legal description
• For condo purchases, you will need a declaration, condo fees, and all documents pertaining to the health of the property
• Lawyer’s contact information

Asset and Liability Ledger

You will need to provide the lender with all your financial information. Your bank should be able to issue these documents and most people can access it via their online banking account.

You will need to provide a list of your assets and their value, and a list of your liabilities including total amount and repayment terms.

For your ease, here’s a checklist you can copy and paste and use as you prepare your application. Remember, variables exist depending on the lender, your financials and the loan amount. In addition, the lender can request additional documents.

Checklist:

• Personal information (full name, date of birth, SIN, contact info marital status, dependents, current address)
• Pay Stubs
• Letter of Employment
• Mortgage Pre-approval (if applicable)
• Bank statements
• Value of RRSPs
• Banking info
• List of assets
• List of liabilities
• Credit score
• The mailing address of the property
• Proof of down payment
• Signed mortgage agreement
• Sales contract outlining the offer
• Listing and legal description
• For condo purchases, you will need a declaration, condo fees, and all documents pertaining to the health of the property
• Lawyer’s contact information