How to Get a Mortgage in Newfoundland
- 1). Add up your gross income. This should include your regular salary, income from other sources and may include commission and bonuses, depending on their reliability. Take 30-percent of this figure then divide by 12. The result equates to the approximate monthly repayments your lender will allow. To get a mortgage in Newfoundland, your lender will use the repayment figure to calculate the maximum amount of mortgage you will be offered.
- 2). Contact a Newfoundland mortgage broker with your figures (see Resources). He will calculate the amount of mortgage you may be able to get. Tell him you would like to get pre-qualified for a mortgage. Pre-qualification means your financial details and verification of your down payment are all considered in advance and a provisional mortgage offer made. It makes purchasing a property easier as pre-qualified mortgages are only subject to the lender's approval of the property, determined by a valuation once an offer is agreed on.
- 3). Choose a mortgage lender from the selection offered by your mortgage broker. He will have compared lenders to get you the best mortgage. Complete the application forms and give them to your mortgage broker with any other documentation required. This will include proof of address, evidence of income (pay slips or bank statements) and means of making your down payment. Your mortgage broker will mail the documents to your lender for processing. This will include checking your credit record.
- 4). Arrange to visit your mortgage broker once he has contacted you. He will advise that you have been pre-qualified for a mortgage. Read the documents to confirm the amount the lender has pre-qualified.
- 5). Sign the forms to accept the pre-qualified offer. Find a property to purchase. Make your offer and once accepted inform your lender. They will value the property and provide you with your mortgage.
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