As a Hamilton mortgage broker, I understand how the process of securing a mortgage and purchasing a new home can feel overwhelming. Fortunately, I am here to tell you that doesn’t have to be the case.
By preparing yourself for the steps of the process that lies ahead, you can reduce the amount of stress you feel about the process and all that is involved.
One of the most intimidating parts of the entire mortgage process will be getting approved for your loan. The good news is that you can prepare for this part of the process by taking advantage of the following tips for getting your mortgage approved.
When it comes to whether or not you will get approved for your mortgage, one of the most influential factors will be your credit score and report. To make sure you are on the right track, check your credit well before you plan on applying for your mortgage. This will give you time to have any errors fixed and to improve on any areas that may prevent you from getting approved.
Lenders will want to see that you have good credit, that you have been building savings and that your current level of income can support your mortgage in addition to any debts that you are currently paying off.
Obtaining a pre-approval can be a great way to make sure you are on the right track with your credit and other qualifying requirements. Getting pre-approved for your mortgage loan doesn’t guarantee you will be approved for your mortgage when you submit your actual application, but it does give you a pretty good idea about whether or not you will get approved and what loan amount you should expect to receive. Even failing to get pre-approved can show you what areas of your finances that you need to work on improving before you apply for your mortgage.
If you are in good shape to be approved for your mortgage and successfully obtain a pre-approval, don’t take that as the go-ahead to increase your spending habits or make purchases of any big-ticket items. Excessive spending before you are officially approved for your mortgage can also negatively impact your chances of being approved for your loan.
It is also important to remember that your employment and current income are taken into consideration during the approval process, so losing or quitting your job or any other major changes like moving to a different company can have a major impact on your approval.
Keeping these home loan approval tips in mind when you are starting out with the mortgage process can save you a lot of headaches and stress down the road.
Source: http://www.whichmortgage.ca/article/five-tips- to-getting- your-mortgage- approved-118329.aspx