Buying a home requires careful preparation, especially when it comes to paperwork. Having the necessary documents ready can streamline the process and help you secure financing and finalize the purchase smoothly. Here’s a list of key documents you’ll need:
1. Mortgage Pre-Approval Letter
Before you start house hunting, obtaining a mortgage pre-approval from a lender is essential. This document outlines how much you can borrow and at what interest rate, giving you a clear budget for your home search.
2. Proof of Income and Employment
Lenders require proof of steady income to approve a mortgage. You’ll typically need:
- Recent pay stubs
- A letter of employment confirming your position, salary, and length of employment
- Tax returns and Notices of Assessment for the past two years (for self-employed buyers)
3. Credit Report and Financial Statements
A strong credit history improves your chances of mortgage approval. Lenders may request:
- A credit report from a credit bureau
- Recent bank statements to assess your financial stability
- Details of any existing debts or financial obligations
4. Identification Documents
To verify your identity, you’ll need government-issued identification such as a passport or driver’s license.
5. Down Payment Confirmation
Proof of funds for your down payment is required. This may include:
- Bank statements showing accumulated savings
- Gift letters if funds are received from a family member
- Investment or RRSP withdrawal documents, if applicable
6. Purchase Agreement and MLS Listing
Once you find a property, the real estate agent will provide a purchase agreement and MLS listing details. These documents outline the terms of the sale, including price, conditions, and closing date.
7. Property Appraisal and Home Inspection Report
A lender may require an appraisal to confirm the property’s value. A home inspection report is also recommended to ensure there are no hidden issues.
8. Lawyer or Notary Information
A real estate lawyer or notary will handle the legal aspects of the purchase, including reviewing contracts and facilitating the transfer of ownership. Their details should be provided to all parties involved.
Being prepared with these documents will make the home-buying process much smoother and help avoid unnecessary delays.
