First Time Buyers Week: Part 3
January 22, 2025 | Posted by: Sherry Corbitt
Financing in place: check!
Have team members: check!
Found the perfect home and placed an offer that was accepted: check!
What's next? SHOW ME THE PAPERWORK!
Now it is the paperwork time to prove to the lender that your employment is factually and provable. Gone are when you don't have to prove where you work and expect your employer to get a phone call to confirm employment verbally.
Here is the common paperwork for employment (all lenders have the right to ask for additional paperwork as deemed necessary to confirm your employment income):
Salaried employee
Usually a letter of employment and 1 or 2 recent pay stubs. Your employer's letter of work is written on letterhead and has your start date, job title, and annual salary.
Hourly employee or claim overtime/bonuses with your income
A letter of employment, 1 or 2 recent pay stubs, and usually the last two years of your Notice of Assessments. Notice of Assessments (NOA) is the paperwork that comes back from the government after filing your taxes. The lender is looking to see what your two-year average is.
Self-employed
Typically a self-employed person will need to show their last two years' NOA along with a business license and your Articles of Incorporation (this is part of your tax filing forms).
Sometimes paperwork gets misplaced, and you aren't sure where your tax returns are. No worries! I work with an accountant who can go into the CRA website and print off your T4s, T1 Generals, and Notice of Assessments if you give them signed access. This will save you a ton of running around and stress if you can't find your paperwork. Call me, and we can get this done for you.
The following post will discuss down payment, closing costs, and other expenses to expect.
A house is made of walls and beams; a home is made of love and dreams.
Sherry Corbitt, Mortgage Agent and Certified Divorce Financial Analyst
Mortgage Intelligence FSCO # 10428
