Once you are ready to obtain a mortgage, it is a good idea to select a lender to get pre-approved for mortgage. Pre-approval is a formal process and a mortgage pre-approval certificate is a valuable document with a written confirmation for a specific maximal amount of mortgage and fixed interest rate good for a specific period of time.

The pre-approval means that the lender will check your credit record, check your employment, and look at your finances to establish the amount of mortgage you can afford. The pre-approval certificate will make the search for your new home much easier and less time-consuming because you will have a realistic price range in mind.

Having the right documents and information in place will speed up the proces. Also it is good idea to write down a list of questions you would like to have answered.

The things you will need to have with you the first time you meet with a lender are:

• Your personal information, including identification such as your driver's license and social insurance number.
• Confirmation of salary and details on your job in the form of a letter from your employer. Ask your employer to prepare a letter on company letterhead outlining your name, base salary or hourly rate, normal hours worked per week, position and length of service. A recent pay stub and a copy of your T4 from last year may also be required.
• Information about all sources of your income. If commission sales or self-employed, some lenders may ask for three years personal tax returns together with the Notice of Assessments from Revenue Canada or you will have to declare your income. Ask lender prior to appointment about mortgage documents required for self-employed.
• Information and details on all bank accounts (name of financial institutions, address, type of accounts and account numbers).
• Information on all your loans and other debts (i.e. car loan, credit card balances, child or spousal support payments).
• Proof of financial assets (i.e. cash amounts, stocks, bonds, RRSPs, car).
• Source and amount of down payment and deposit.
• Proof of source of funds for the closing costs (usually between 1.5% to 4% of the property's purchase price).

Note: If you had any past credit problems, let lender know in advance.

HELPFUL LINKS:

• Mortgage Info
• Your Credit Score
• Calculators
• Arranging Your Mortgage
• Mortgage Insurance
• Buying a Home: What You Can Afford