Real Estate

Down payment question

  • Last Updated:
  • Feb 18th, 2020 8:43 pm
[OP]
Newbie
Sep 6, 2019
91 posts
76 upvotes

Down payment question

Hi RFDers,

Just wanna make sure I'm getting my information right here.

W.r.t. verifying the downpayment
- Does the lender need 30 day statements or 90 day statements? Or are there lenders that work with one time period vs the other?
- Does it usually take 2 weeks for the lender to complete their due diligence if you've already received a mortgage commitment?

Thanks all.
3 replies
Sr. Member
May 3, 2013
751 posts
448 upvotes
Toronto
Most lenders work with 90 day statement. They want to see stability. Ie. Showing ur income was $5000/mth for the last 3 months is different than showing for only 1 month.

Much of the due diligence should be done after the mortgage commitment. Initially, the lender will ask you about ur debts and income, and based on that info, u will get a mortgage preapproval (which in most cases, is not legally binding). Once you have your agreement of purchase signed, the lender will ask you to provide proof for each of those income and debt you said you had. Then it goes to underwriting for the actual mortgage amount to be released. The credit bureau may be pulled prior or after the agreement of purchase. Some lenders may do their full due diligence up front
Deal Guru
User avatar
Jun 26, 2005
10096 posts
1954 upvotes
Toronto
Yup, basically strip naked and bend over.

And everything is sent via Gmail or whatever web based email you have. Now Google has all your financial info, SIN, bank statements, etc. Talk about identity theft.

Lenders don't care either, they sent me stuff to sign , they could have easily mistyped a letter in my email address and sent my stuff to another person. Don't even bother password protecting anything.
Deal Guru
User avatar
Feb 2, 2014
10417 posts
3047 upvotes
Toronto
MoNaMi1 wrote: Hi RFDers,

Just wanna make sure I'm getting my information right here.

W.r.t. verifying the downpayment
- Does the lender need 30 day statements or 90 day statements? Or are there lenders that work with one time period vs the other?
- Does it usually take 2 weeks for the lender to complete their due diligence if you've already received a mortgage commitment?

Thanks all.
90-days of bank statements to see where the down payment is coming from.

Try to get everything completed around the 2 week mark.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

Top