Are you on the exciting path to homeownership or considering refinancing your current property? If so, you've probably heard about income verification and its pivotal role in the mortgage application process. At House & Home Mortgage Co., we're here to guide you through the intricacies of income verification and documentation, making your journey to homeownership a breeze.

The Significance of Income Verification

Picture this: You've found your dream home, or you're planning to secure a more favorable mortgage deal. Your credit score is in good shape, and you're feeling confident about your financial standing. But don't hit the brakes just yet – income verification is the key that can unlock the door to your homeownership dreams.

Understanding Income Verification

When you apply for a mortgage, lenders are keen to assess your financial stability and your capacity to meet your mortgage obligations. This is where income verification becomes a critical component of the process.

Essential Documentation
  • Employment Letter: Your lender will often contact your employer to confirm your current job status and income. Be sure to have your employer's contact details readily available. The letter should be on company letterhead and signed by the person who wrote it.
  • Pay Stubs: These offer a snapshot of your current income. To ensure your application is smooth sailing, make sure your pay stubs are up to date and accurate.
  • Tax Returns: Typically, lenders want to review your tax returns from the past two years. This provides a more comprehensive look at your financial history, especially if you're self employed.
    • In Canada your tax return is called a T1 General.
    • In addition or in place of this, we may also ask for any T4 or T5 slips from your employer or other sources of income. 
  • Notice of Assessment: This is the tax form you get back after filing your income taxes. It verifies the details on your T1/T4 and confirms you have no taxes owing (or if you have taxes owing , it confirms how much is outstanding). 
  • Bank Statements: Lenders will  need to examine your bank statements to verify your assets, including your down payment and any financial reserves. Keeping these organized is a wise move.
 Top Tips for a Smooth Income Verification Process
  • Consistency: Ensure that the information on your pay stubs, tax returns, and bank statements align. Any inconsistencies can raise concerns.
  • Be Prepared: Get your documents in order before starting the application process. This will save you time and reduce stress.
  • Open Communication: If any questions or irregularities arise in your income documentation, communicate openly with us. Honesty is paramount and the more we know the better we are equipped to help get your mortgage approved.
  • Include Additional Income: Don't forget to disclose any supplementary income sources, such as rental income, side gigs, or investments.
Let's Make Your Homeownership Dreams a Reality

At House & Home Mortgage Co., we're dedicated to simplifying your journey to homeownership. We've helped countless clients navigate the income verification process with confidence and ease. We use the latest technology to help gathering these documents and to make things as quick and easy as possible.

So, as you gather your income verification documents and prepare for this exciting chapter, remember that we're here to support you every step of the way.

Ready to move forward or have questions? Reach out to us. We're just a click away on your path to homeownership. Schedule a consultation with us through our calendar link.