Small town feel, ocean front properties, high density outlook…White Rock and South Surrey

White Rock says “yes” to high density

Podcast Overview: (March 16, 2018)

Intro:

*spotlight on White Rock and South Surrey
*Surrey ranks as BC’s 2nd largest and fastest growing city
*expected to lead the province in real estate investment in the next 5 years
*White Rock is a desirable ocean front community, 2 public beaches
*2 hour drive to Seattle, nearby BC Ferrie terminal, 10 minute drive to US border, and 15 surrounding golf courses

Guest (Ped Naimi, Realtor, Vantage Real Estate):

*the development of Town Centre in the Morgan Creek/Crossing area has been a trigger for sustained development in South Surrey and White Rock. Since 2009, approximately 6,000 households have been constructed in a 10 sq block area.
*White Rock is currently favouring high density apartment/condo towers. Many projects on the go or slated for completion
*when you compare with other ocean front communities, you could conclude that the White Rock area is somewhat, undervalued (relatively speaking)…some good deals to be had
**sales to active listings ratio (absorption rate) for town homes and condos is ~50%. Anything above 20% is considered a sellers market. It takes about 3-7 days (on average) to sell a condo in White Rock
*for what Whiterock and South Surrey lack in rapid transit, they make up in easily accessable highway routes
*Surrey plans to develop another down town core
*from a mortgage qualification perspective, rental suite income is fully acceptable in White Rock and South Surrey (aka “mortgage helper”)

Mortgage Minute (Marko Gelo)

The down payment verification process sounds simple enough, but can also be the most irritating part of satisfying mortgage conditions. It’s not so much the documentation required by the lender, but more so the quality and the specific date archive requirements of the documents.

Let’s consider a down payment of $50,000. If the entire sum is derived from one source (let’s say its cash in your savings account), then the task is quite simple…you would provide the bank statement showing that you have had possession of the funds for 30-90 days (depending on the guideline of the lender). Not only must the duration of time you’ve had possession of the funds be verified, but also the particular date from which the duration is referenced from as well. For example, if your mortgage application was submitted on May the 1st, some lenders would require that you provide 3 months of banks statements dating back from May the 1st. However, another lender may require only 60 days verification, but instead dating back from the closing date rather than the application date. Clear as mud, right?

the “source” of down payment also needs to be verified

Ok, so lets move on to verifying the source of down payment.

Say $10,000 (of the $50,000) was a lump sum deposit from your parents? Now, the lender will require a signed gift letter to confirm the $10,000 is a non-repayable gift.

Oh yes, and what if you are expecting the final portion of your down payment from a bonus you are expecting just days before your closing date? Not a problem, simply provide a snapshot of your bank account showing the deposit along with the pay stub that confirms the source (from your employer). All good.

Key down payment guidelines

Ok, easy enough right? Yes, but the quality of the document now comes in to play…this is where it really gets fun, here are some common deficiencies (in no particular order) that will likely result in a follow-up call from your mortgage broker for further clarification:

Number ONE: the applicants name not captured on the bank statement. This is probably the most common deficiency, but easily remedied with a void cheque or past statement that includes your name and account number.

Number TWO: the period of time that needs to be shown that you have had possession of or accumulated the funds may not be presented in your document submission (typically, a 30 to 90 day period is required). Again, quite common and often times a simple follow up email or phone call to request an extra month or two of bank statements. No big deal here.

Number THREE: for deposits over $5,000 another layer of verification may be required so as to comply with anti-money laundering policies. So now, you will have to provide another 3 months of bank statements to verify this particular deposit within you initial 3 month verification statements. Easy peazy, on it.

and finally, Number FOUR: snapshots of your bank statements or any other documents for that matter taken with your cell phone camera. In most cases the resolution and quality are not ideal and acceptable to lenders. But again, no big deal…nothing a $0.99 pdf scanner app can’t fix. One I like to recommend to my clients is Turbo Scan which enables you to snap a picture of a document, quickly converted to pdf quality and ready to be emailed to your mortgage broker.

OTHER Resource Links:

*South Surrey and White Rock real estate information
*Imagine Whiterock 2045
*South Surrey info