How to Get Approved for a Mortgage
Knowing how to get approved for a mortgage is very helpful when planning to buy your first home, or investment property or even your second home. Do not even think that real estate financing can be approved without knowing that there are certain prerequisites on how to get approved for a mortgage.
When it comes to getting a mortgage approval you should be ready to provide proof of employment / income, down payment, strong credit history and willingness to work with your mortgage broker or agent. There will be occasions when it’s just not time yet to buy your own place and that’s alright. This wake-up call allows you to prepare yourself for the near future. Things that you can do on how to get approved for a mortgage are:
1) Make sure you have a steady income stream; full time employment or self-employment
2) Start putting aside money for your down payment. You will need at least 5% of the purchase price. The higher your down payment amount the higher could be your chances to getting a mortgage approval.
3) Do a credit check on yourself with both Transunion, and Equifax Canada
to make sure your credit is in order. If you find any problems with it, such as fraud, outdated payment / debt balance information, incorrect personal information, or anything else; immediately rectify the issues. The stronger and cleaner your credit bureau history the better it will look when the lender reviews it at the time of mortgage application.
4) Even the property you are interested to buy can make a difference in your mortgage approval rating. There are times that for different reasons the lender will not approve the mortgage application, even though everything else is good, because the property is not marketable, or too small, or was previously used for illegal purposes. This is where it pays off to work with an experienced and trustable Realtor who can find you the right properties.
5) Lastly,and equally important, consult in advance with a mortgage professional about your future plans of home ownership. A mortgage professional is trained and educated on the subject of mortgage lending and underwriting. They will be able to provide you with valuable and timely advice.
Are you wondering if you could be approved for a mortgage and how much? Contact us. We are here to help, and work with you in reaching your home ownership goals.