Mortgage Pre-Qualification: To Do and Not To Do List
While putting together this guide, I started out compiling information from my own research and experience. Then I had a great idea: why not reach out to someone who helps buyers succeed every day? I contacted Carolyn Munro, a well-respected local mortgage broker with many years in the business. Carolyn not only reviewed my list, but she also shared some incredibly valuable tips from her decades of experience working with Brandon and area homebuyers:
- In preparing to purchase a home, ensure your credit rating is in the Good to Excellent range — 650+.
- Try to reduce all credit card balances to 50% or lower than your limit.
- Keep a clear paper trail for your down payment and closing costs. Setting up a special savings account just for your home purchase makes things far less complicated: when funds are split over multiple accounts, the process can become messy.
- When lenders receive supporting mortgage documents (like income and down payment confirmation) on the same day as your mortgage application, there’s an 82% likelihood of your mortgage funding. If no documents are provided with the initial application, that likelihood drops to just 70%. It pays to be prepared!
What To Do Before Applying for a Mortgage
- Check your credit score early and improve it if needed by paying down debts and fixing errors.
- Organize your financial records such as pay stubs, T4s, and Notices of Assessment for self-employed applicants.
- Save for your down payment and keep the funds in your account for at least 90 days to show source and stability.
- Get pre-approved by a mortgage specialist to know your budget and show sellers you're serious.
- Budget beyond purchase price including closing costs, insurance, legal fees, and moving expenses.
- Maintain financial stability without new debts or changes before final mortgage approval.
What Not To Do Before Your Mortgage Appointment
- Avoid big purchases or taking on new debt such as cars or furniture that affect your credit and debt ratios.
- Don't switch jobs or reduce income unless unavoidable, as this complicates approval.
- Don’t move large sums of money without documentation, as unexplained transfers can raise lender concerns.
- Never miss monthly payments on loans or credit cards that can lower your credit score.
- Don't hide financial issues - be transparent with your mortgage specialist for proactive solutions.
Document Checklist for Mortgage Pre-Qualification Appointment
| Document | Why It’s Needed | Examples / Details |
|---|---|---|
| Government-issued photo ID | To confirm your identity | Driver’s license, passport |
| Proof of address | To confirm residency | Utility bills, tax assessment |
| Social Insurance Number (SIN) | For credit checks & identification | SIN card or document |
| Proof of income | To verify stable employment and income source | Pay stubs, T4 slips, employment letter, personal tax returns for self-employed |
| Proof of down payment | To document source and history of funds | Bank statements covering at least 90 days |
| Details of assets | To assess financial stability | Owned properties, vehicles, investments (RRSP, TFSA) |
| Details of debts and liabilities | To calculate debt ratios | Loan statements, mortgage statements, credit card bills, spousal/child support orders |
| Mortgage/property tax statements (if applicable) | For current homeowners | Mortgage statements, property tax bills |
| Co-applicant information | For joint applications | Same documentation as above for each applicant |
Final Thoughts
Navigating the mortgage pre-qualification process can seem overwhelming, but with the right preparation and guidance, you can confidently move forward toward your homeownership goals. As a real estate agent based in Brandon, MB, I bring both local market expertise and a dedicated commitment to helping you through every step of the journey. Whether you’re a first-time buyer or experienced investor, you can trust me to provide reliable advice and personalized service to ensure your real estate experience is smooth and successful. Reach out anytime — I’m here to support you in finding the perfect home.
Disclaimer
This article is for informational purposes only and does not constitute professional mortgage or financial advice. I am a licensed real estate agent, not a mortgage broker or mortgage specialist. All information shared in this blog post has been derived from an interview with a licensed mortgage broker. Readers are encouraged to consult directly with a qualified mortgage professional for personalized advice and recommendations before making any financial decisions. While efforts have been made to ensure the accuracy and reliability of the information provided, no guarantee is given regarding its completeness or correctness. Any actions taken based on this content are at your own risk.