For most home buyers, obtaining a mortgage is a crucial part of the purchasing process. To get pre-approved for your mortgage, you’ll want to speak with a professional mortgage broker or lender to determine the loan amount you’re eligible to borrow when purchasing a property.
You’ll need to provide documentation, such as proof of employment and your Government issued identification, as well as answer some questions about your income, assets, and current debts. Being approved for a mortgage can be tricky, as there are many factors that are considered in the decision to loan you money. To increase the likelihood of an approval, here are three tips you can use to help strengthen your odds of getting pre-approved. ⠀
1. Don’t Skimp on Your Down Payment
One of the best ways to boost your chances of mortgage approval is by saving a healthy amount of money for a down payment. Lenders love to see loan applicants with a good amount of cash on hand, as it greatly reduces the risk on their end. You may be able to obtain a mortgage with as little as 5% down; however, if you want to really impress your lender (and get ahead in the long run), try to shoot for a 20% down payment.
2. Get Your Credit History in Check
Lenders have near-instantaneous access to your credit report and will use the report as a main factor when deciding whether or not to approve your mortgage application. You can check your credit report before applying, so you know where you stand in advance - and if you come across anything unusual or inaccurate on your report, you’ll have some time to get it corrected without delaying the application process. By making your credit report look as good as possible, you’re giving yourself the best chance of approval.
3. Have Steady Employment
Showing that you have the ability to hold down a job is a big benefit for your loan application. Sticking with your employer over the long-term means that your employment status is consistent, which assures the bank that you have the financial capability and stability to pay back a mortgage over time. Though the lender may take into consideration if you’re staying in the same industry or similar type role, swapping jobs midway through the process could even result in your application being rejected. Banks want to lend to people who they think can pay them back; being steadily employed is a great indicator that you'll be able to do just that.
The mortgage application process is often tedious and the current market conditions require a mortgage professional who keeps their knowledge up to date - let me help you through the process! Give me a call today at 250.804.9874 or email firstname.lastname@example.org to connect and learn more about maximizing your chances of a successful mortgage approval.