When purchasing a home and moving, all while keeping the regular ship afloat, why not save some time and stress? Believe it or not, there are a handful of little things that aren’t the tips you might think of but will save you from frustration and headaches during your approval process!
File faux pas
We’ll typically ask for a bank account history covering 30-90 days (in some cases more) when tracking your down payment. Assuming you’ve got online banking, which almost everyone does these days, you’re able to download PDFs of your statements and account history. This is the quickest way for us to process your information. These have all the necessary information and are generally the most secure way to go.
When you download your transactions, make sure to download these as PDFs instead of Excel files. We’re not saying you’d do this but theoretically, anyone can just open a spreadsheet and start typing away. Please ensure you’re downloading a PDF of your banking statements. We also need the digital files. Almost everything that’s needed and processed will be done digitally, so the necessary documents are made available that way!
Note: Even if we’re using the same institution you do your banking with, this is a completely separate department from the one we’re handling your mortgage with. We will need you to provide us with the necessary files for us to then submit to the lender.
A (properly taken) picture is worth a thousand words
When we ask for PDF documents of bank statements, T4s & T5s, or a letter of employment, a PDF should be the default file type Remember, if you’re working from a computer or smartphone, then you can save and send PDFs! This is the preferred way for our lenders to accept all paperwork… we’ll also need photos of things like your driver’s license.
This might seem like a no-brainer but you’d be surprised how often someone takes a photo of their license with their thumb covering needed information or their finger covering part of the lens. All important information needs to be visible so place the license on a flat surface and take a portrait-oriented photo or use a scanner (app or the real thing if you’ve got it).
Note: Please don’t redact or black anything out in documents or photos. Our job is to act as the liaison between you and the lender. Lenders can be pessimistic and information that’s blacked out invites them to assume the worst. You might simply be removing something you didn’t know the lender might consider.
Information dos and don’ts
Similar to the redaction note, please make sure that the documents you send include your name or an identifying feature. Certain statements won’t have your name but will have a client number or account number. We just need to be able to connect an account number to your name and the bank statements — so let’s connect those dots!
Another popular occurrence, whether intentional or not, is getting sent only one page of a multi-page document. This creates problems for us and the lenders even if all the information needed was on that page. On top of possibly missing needed information, there are compliances and regulations surrounding documentation groups being fully complete. A PDF file that reads “Page 1 of 6” at the bottom without five more pages doesn’t work.
When it comes to a letter of employment, we also require specific information. First off, when we’re talking about employment letters, we’re NOT talking about a letter of offer or your contract. What we need is a document titled “Letter of Employment” that includes:
- Company letterhead (with contact info)
- Dated within 30 days
- Your name
- Your position
- Your employment type (i.e. full-time, part-time, casual, contract, etc.)
- Your salary OR hourly wage and how many hours you’re guaranteed
- Bonus marks if your letter includes your length of time of employment
- Signed by someone who can verify these details and their contact info
Note: As much as it might be out of your control (since you’re not the one writing it!) try to make sure all these elements are included and avoid verbiage like “average hours” or “typically works”.
Specificity is key in these situations so contact the Kyle Miller Mortgage Agent team today to have us walk you through your options and what it takes to get there!
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