Five Tips To Ensure Your Mortgage Application Is Approved The First Time
As you begin your journey towards homeownership, the first big step you need to take is finding the right mortgage to finance your dream home. However, mortgages can be challenging and overwhelming, especially if this is your first one. There are various factors involved before being eligible for a mortgage, so you’ll need a professional’s help to enable you to make the right choices throughout the mortgage process.
Fortunately, at Nola Stairs, I am familiar with the mortgage processes and the amount of paperwork you will need to take on. I have the resource and will provide you with assistance to guide you while filling your mortgage application. To help you improve your chances of getting a mortgage with favorable terms, I have outlined in this blog five tips to ensure your mortgage application is approved the first time.
Tip #1: Check your credit score
Your potential lenders will want to know how creditworthy you are. So check your score well in advance of applying for a mortgage. The best way to keep up your credit score is by ensuring that your payments are always made on time and try to pay down credit cards so they are not at their maximum limit.
Tip #2: Maintain a stable income
Most lenders will want to see that you have been employed for a decent amount of time before giving you a mortgage. So make sure you are employed full-time or permanent with no probation and with guaranteed hours. If you maintain part-time, casual, or irregular hours, you must be on the job for at least two years.
Tip #3: Save up for a downpayment
Whether it’s your first or second home, you will need a minimum of 5% down to purchase a house, plus 1.5% for closing costs. However, your down payment can be a gift from a family member, but you’ll need the donor to write a gift letter that clarifies that the money is a gift and not a loan. Also, If you finance the property as an investment property, you’ll typically need at least 20% down.
Tip #4: Maintain proper documentation
It’s a good idea to start prepping your financial documents before you actually approach a mortgage broker or lender. Just make sure you are able to provide documentation in regards to employment, income, and down payment.
Tip #5: Speak with a mortgage broker
It’s essential to know how much you can afford and the down payment requirements to determine the type of mortgage suitable for you. So sit down with a mortgage broker who will give guidance, advice, and recommendations when helping you find a mortgage.
For more tips to ensure your mortgage application is approved the first time, reach out to Nola Stairs. I am a licensed mortgage broker and a realtor in Prince George, BC, with over twenty-nine years of experience. I provide first mortgages, private mortgages, mortgage refinance, line of credit, reverse mortgages, etc. My services are available to clients across Prince George, Quesnel, Vanderhoof, Mackenzie, McBride, and Tumbler Ridge, BC.