Getting pre qualified for a mortgage is different than just getting pre approved. Pre Qualifying is the process by where we actually gather your documents and work out exact numbers for you to go searching for a new home.

First and foremost we need to collect your income information for the pre qualified process, this means we need a letter of employment and a current pay stub, 2 yrs notice of assessments from revenue Canada and possibly your T1 Generals as well.

Second item to review is your down payment for the pre qualification process. If you have the money in savings you need to get us 3 months of bank statements showing your name and the account number. If the money is a gift from a direct relative then you need a gift letter for the lender and we will need to show that money in the bank eventually.

Third is the selection of a lawyer, not all lawyers practice real estate law. Make sure you find an office that deals in real estate. We have lawyers that we work with that deal exclusively in real estate.

Fourth we will need a void check for the account that you are planning to have your payment come out of, so few people use checks these days that you may need to go to your bank and get a pre authorized debit form for them to stamp and confirm your account.

Fifth is you need to start thinking about your insurance needs to protect your new purchase? If you are in an accident will you be able to cover your payments, if not we need to start thinking about disability insurance. If you die is your family going to be able to keep the house or will they need to sell and go back to renting, mortgage life insurance can help protect your assets.

Sixth is fire insurance on the property, your lender will require that you have replacement insurance on the property that in the case of a fire you can rebuild the home? Home insurance doesn’t include the land value as it will obviously still be there after a fire.

Seventh items is to think about moving, how much will it cost and how far in advance do I need to contact a mover? Will they be available on the day my new home is ready?