Tricky Doc requests
Joel Olson • October 28, 2021
TRICKY DOC REQUEST What to do, when you don't know what to do.
1. I have no agreement and have been separated for years.
If you are separated or divorce, we are looking for an agreement that confirms that you pay no spousal support, child support and that all your assets have been divided equally. If none of these things would have applied you can reply to that doc request that you wish to sign a stat dec at the time of closing as none of this applicable.
2. I can’t get a job letter.
Every lender these days need to verify your employment by way of a job letter from your employer. Whoever does payroll will be able to provide you with one. The letter should be signed have a number in which a lender can to verify. The letter itself must state your start date, # of guarnateed hours every week or your yearly salary as well as your hourly wage.
3. I don’t have access to Tax Returns
You can get your tax returns from your bookkeeper or accountant or whoever assembled your taxes. Your tax returns are not the same as your notice of assessments that just tell us how much income that you have made. Your tax return must contain all the pages, which will tell us how much any business or rental property grossed and its applicable expenses. We have to get all the pages of the return to be able to use it.
4. Where do I get a property tax statement?
You can simply call your applicable municipal office, they can supply you with one by email which will be sufficient.
5. Where do I get a gift letter from?
We don’t need to have a gift letter signed till after we get you approved. Every lender will have their own form.
6. Do I have to sign all the contracts?
Yes, it's important that you know exactly what to expect and when to expect it, so please make sure to address any questions that you have.
7. Do I need to show the downpayment if I haven’t found a house yet?
Different sources of downpayment matter. We need to know that we can verify where your downpayment funds are coming from. We can’t wait to see funds in your account, but we need to know where we are coming from. Anti-money laundering insists that we can give a history of every account that is sourcing the downpayment as well. We can’t just accept a screenshot of your account
8. I work for myself- do I need a job letter?
If you are an owner of a company regardless of how you get paid, we will need to see your last two years tax returns as well as your last two years company financial statements. You won’t need a job letter though
9. Do you really need a void cheque?
The void cheque is the account which will be debited the mortgage payment. We can wait on that, but we will need it.
10. Can you give me a rough idea on what I qualify for
There are some many way we have to calculate qualifying. How much you work, for how long you have worked, how many hours, how much downpayment, and where you are buying are all questions that can make a meaningful impact on your application and change how much you qualify for. This is why we have to get all the information and documents before making a decision.
What Is a Second Mortgage, Really? (It’s Not What Most People Think) If you’ve heard the term “second mortgage” and assumed it refers to the next mortgage you take out after your first one ends, you’re not alone. It’s a common misconception—but the reality is a bit different. A second mortgage isn’t about the order of mortgages over time. It’s actually about the number of loans secured against a single property —at the same time. So, What Exactly Is a Second Mortgage? When you first buy a home, your mortgage is registered on the property in first position . This simply means your lender has the primary legal claim to your property if you ever sell it or default. A second mortgage is another loan that’s added on top of your existing mortgage. It’s registered in second position , meaning the lender only gets paid out after the first mortgage is settled. If you sell your home, any proceeds go toward paying off the first mortgage first, then the second one, and any remaining equity is yours. It’s important to note: You still keep your original mortgage and keep making payments on it —the second mortgage is an entirely separate agreement layered on top. Why Would Anyone Take Out a Second Mortgage? There are a few good reasons homeowners choose this route: You want to tap into your home equity without refinancing your existing mortgage. Your current mortgage has great terms (like a low interest rate), and breaking it would trigger hefty penalties. You need access to funds quickly , and a second mortgage is faster and more flexible than refinancing. One common use? Debt consolidation . If you’re juggling high-interest credit card or personal loan debt, a second mortgage can help reduce your overall interest costs and improve monthly cash flow. Is a Second Mortgage Right for You? A second mortgage can be a smart solution in the right situation—but it’s not always the best move. It depends on your current mortgage terms, your equity, and your financial goals. If you’re curious about how a second mortgage could work for your situation—or if you’re considering your options to improve cash flow or access equity—let’s talk. I’d be happy to walk you through it and help you explore the right path forward. Reach out anytime—we’ll figure it out together.
Can You Get a Mortgage If You Have Collections on Your Credit Report? Short answer? Not easily. Long answer? It depends—and it’s more common (and fixable) than you might think. When it comes to applying for a mortgage, your credit report tells lenders a story. Collections—debts that have been passed to a collection agency because they weren’t paid on time—are big red flags in that story. Regardless of how or why they got there, open collections are going to hurt your chances of getting approved. Let’s break this down. What Exactly Is a Collection? A collection appears on your credit report when a bill goes unpaid for long enough that the lender decides to stop chasing you—and hires a collection agency to do it instead. It doesn’t matter whether it was an unpaid phone bill, a forgotten credit card, or a disputed fine: to a lender, it signals risk. And lenders don’t like risk. Why It Matters to Mortgage Lenders? Lenders use your credit report to gauge how trustworthy you are with borrowed money. If they see you haven’t paid a past debt, especially recently, it suggests you might do the same with a new mortgage—and that’s enough to get your application denied. Even small collections can cause problems. A $32 unpaid utility bill might seem insignificant to you, but to a lender, it’s a red flag waving loudly. But What If I Didn’t Know About the Collection? It happens all the time. You move provinces and miss a final utility charge. Your cell provider sends a bill to an old address. Or maybe the collection is showing in error—credit reports aren’t perfect, and mistakes do happen. Regardless of the reason, the responsibility to resolve it still falls on you. Even if it’s an honest oversight or an error, lenders will expect you to clear it up or prove it’s been paid. And What If I Chose Not to Pay It? Some people intentionally leave certain collections unpaid—maybe they disagree with a charge, or feel a fine is unfair. Here are a few common “moral stand” collections: Disputed phone bills COVID-related fines Traffic tickets Unpaid spousal or child support While you might feel justified, lenders don’t take sides. They’re not interested in why a collection exists—only that it hasn’t been dealt with. And if it’s still active, that could be enough to derail your mortgage application. How Can You Find Out What’s On Your Report? Easy. You can check it yourself through services like Equifax or TransUnion, or you can work with a mortgage advisor to go through a full pre-approval. A pre-approval will quickly uncover any credit issues, including collections—giving you a chance to fix them before you apply for a mortgage. What To Do If You Have Collections Verify: Make sure the collection is accurate. Pay or Dispute: Settle the debt or begin a dispute process if it’s an error. Get Proof: Even if your credit report hasn’t updated yet, documentation showing the debt is paid can be enough for some lenders. Work With a Pro: A mortgage advisor can help you build a strategy and connect you with lenders who offer flexible solutions. Collections are common, but they can absolutely block your path to mortgage financing. Whether you knew about them or not, the best approach is to take action early. If you’d like to find out where you stand—or need help navigating your credit report—I’d be happy to help. Let’s make sure your next mortgage application has the best possible chance of approval.
