Lenders need to see that you have the income to support a mortgage.  When you apply for a mortgage, you should have the following ready to go:

• 1. Recent paystubs;
• 2. Job letter stating your position, salary, and duration of employment;
• 3. T4 from the previous year;
• 4. Tax return; and 
• 5. Notice of Assessment (NOA). 

Most of the time, a lender will only ask for a recent paystub and job letter, however, in some situations they may need further documentation—so be ready to produce the documentation listed above.

There are some situations where more information will most likely be needed, such as:

• – If you have recently changed jobs;
• – If your income is mostly from commission;
• – If you have a contract position;
• – If you are taking a leave of absence from work; or
• – If you are self-employed.

Having a mortgage broker on your side means that someone will be there to make sure that you are providing the right documents to the right lender, and that your income is adequately represented in your application.

Stay tuned for the fourth part of my First Time Home Buyers Series, where I will discuss what you need to know about down payments!