5 Tips to Get Mortgage Approved
Here’s the 5 Golden tips to get mortgage approved.
1. Check your credit score, utilization and payment history.
The credit score ranges from 300 to 900. To get the best rates, it’s best to have at least one applicant with a credit score of 680 or more.
Along with the credit score, your credit utilization shows your credibility and ability to repay your debts. But the credit reports also shows your history about late payments, number of accounts open, limit and balance owing. It’s always a good idea to pay your existing high debts including auto loans, student loans , line of credit, etc.
2. Save Down payment
Having a larger downpayment makes your application stronger and more lenders will provide competitive rates to get business from you. Plus more downpayment means less borrowing, which means you’ll pay lesser interest during the mortgage term.
Whenever you put less than 20% down, you need to buy mortgage insurance from CMHC, Genworth or Canada Guaranty. But, this premium can be included in the mortgage, which might increase your monthly mortgage payment.
3. Get your qualifying income right
Lenders always require proof of income and income stability for atleast the last 2 years. With a full-time job, the process gets easier as you have the required documents from your tax filings. But many Canadians are self-employed. Don’t worry, there’s solutions for all. Read this article to see if your income type and numbers are qualifying. For any questions about your income, feel free to reach me.
4. Get your pre-approval
Pre-approval is basically submitting your an application based on numbers to the lender to get approved for a set mortgage amount, interest rate and term. The rates can be help for up to 120 days. And once you have your pre-approval, you can house hunt with confidence and the final application submission becomes easier as the lenders are already notified.
5. Work with a Licenced Mortgage Agent
It’s quite clear that you’re busy with getting the above 4 things right and it’s very challenging for you to shop around for the best mortgage product. Well, I’ve the solution you need. I am a Licenced Mortgage Agent dealing with over 90 lenders, with great connections. So let me take the load off your head and find you the best rates and mortgage product. Your benefit is you get a Mortgage Expert working for You for Free!
As I bring millions of dollars of business to the banks, the discounts and cashback offers on rates I get are unbeatable. Whether you’re a first time home buyer or an investor, I’ll guide you through the mortgage process with the best trusted mortgage advice and provide professional lending experience. And I like to maximize benefits for my clients in terms of rebates and tax savings.