Follow these tips for a smooth approval with any lender ✨
1. Check your credit score.
- To secure a lower rate; utilize credit repair if needed.
2. Save for a large down payment.
- Although only 5% down is required in Canada, 20% down is required to avoid paying mortgage default insurance.
3. Pay off existing debt.
- Having lower GDS and TDS will give you access to a lower rate.
4. Have you documentation ready for your mortgage specialist.
- Although every mortgage situation is unique, most lenders will require a letter of employment from your place of work, proof of savings and assets, list of debts and financial obligations, as well as income documentation such as a T4, NOA, or recent paystub.
5. Get pre-approved.
- This allows you to understand what your budget is and will speed up the final approval process once you have found the one you want to call home.
6. Don’t quit or switch your job(s) during the approval process.
- Lenders want to see stable and consistent income.
7. Have your down payment sitting in your bank account for at least 90 days before closing.
- If your down payment is coming from a gift, a gift letter may be required.
8. Order a home inspection.
- A home inspection will help protect you and the lender from any possible damages that may have been missed throughout the initial showing.
For those not in the industry, mortgages can be confusing and overwhelming but that’s why we’re here to help guide you every step of the way 💃 I work with only trusted professionals to make sure you’re always covered.
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