Five Tips To Ensure Your Mortgage Application Is Approved The First Time
Buying a home signifies a huge commitment requiring time and effort, and so does securing a mortgage to make the purchase. Mortgage applications can be complicated, and as a first-time homebuyer, it can turn even trickier when you don’t know what to expect. So if you’re thinking of buying your first home, you need to look for ways to make the mortgage process easier and guarantee yourself an approval.
At the same time, Anchor Mortgages Canada LTD. understands that as a first-time homebuyer, you may not be aware of the best steps to take to get your mortgage approved. Therefore, to arm you with the correct information and improve your chances of getting a mortgage with favorable terms, we have outlined five tips to ensure your mortgage application is approved the first time.
Tip #1: Speak with a mortgage broker or a financial advisor
Before you even start with house-hunting, it’s vital to know how much you can afford. Have a licensed mortgage broker or a reliable financial advisor look into your financial situation to determine the type of mortgage and lender you can choose. They will also check your credit to avoid your mortgage application being rejected.
Tip #2: Get a pre-approval
A mortgage pre-approval will let you know how much you can spend before you start bidding for properties. It is a simple process where you submit your personal and financial information to your potential lender or lenders. Once approved, you will know how much you can afford, the interest rate available to you, the mortgage terms, and other details.
Tip #3: Be prepared with your documentation
Make sure to collect all the required documents. They need to be up to date with two years of history. Your tax returns from the past year, pay stubs, and a few months worth of bank statements must all be readily available. Other important documents to keep on hand are credit card and loan statements, retirement funds, and other investment paperwork.
Tip #4: Find your dream house
Once you’re pre-approved, the next step is to figure out where you want to buy a house and what works best for you and your family. If you’re unsure of where you’d like to purchase or what type of home is best for you, consult with a real estate agent ahead of time.
Tip #5: Sign your final approval
Finally, you will need to sign all of the paperwork required, including your mortgage documents. Once your mortgage is funded and the money delivered to the seller, you are ready to move into your new home!
For more tips on ensuring your mortgage is approved the first time, reach out to Anchor Mortgages Canada LTD. As leading mortgage brokers in Abbotsford, British Columbia, we specialize in all kinds of mortgage financing and offer you unbiased advice and suitable mortgage solutions for your needs and unique circumstances. Our services include home purchase mortgages, mortgage refinances, mortgage renewals, private mortgage lending, second mortgages, construction financing, commercial equipment financing, and commercial mortgages.