Purchasing a home is a major financial commitment, therefore, it is important that you are familiar with your finances and know the qualification requirements before you fully commit to making this purchase.
So, before you begin the Milton mortgage application process, there are a few things you should be aware of to ensure your application gets approved. To provide some guidance, our team at Loewen Group Mortgages have listed four useful loan approval tips.
Tip #1: Savings
Having a substantial amount of money saved can help your loan application get approved. Your Milton mortgage broker will be more likely to deny your mortgage request if you do not have enough money saved because this shows them that you are not financially capable of owning a home and might not be able to make monthly mortgage payments.
Having enough money ahead of time can help you pay for your down payment, which is a specific percentage of your home’s purchase price. If you pay at least 20% of your down payment, you will most likely receive better rates on your mortgage.
Tip #2: Good Credit
Your credit score is a major factor in the decision-making process for your application and can largely affect the type of rates you may receive on your Milton mortgage. Therefore, be sure you meet the minimum credit score requirements before you apply.
Tip #3: Pay Off High-Interest Debt
Make sure you do not have excessive amounts of debt before you apply for a mortgage. Your local broker will be hesitant to approve you for a loan if you already owe a lot of money to other companies. This means it is important to pay off high-interest debt ahead of time. Paying off high-interest debt can also help increase your credit score.
Tip #4: Stable Income
Most Milton mortgage brokers prefer borrowers to be at their current job for at least two years. This shows them that you have a consistent income and are more financially responsible. Jumping around from job to job every few months can hurt your application because of the inconsistent source of income. So, if you are planning on changing jobs in the near future, we highly recommend waiting until after your finances have been reviewed and your loan has been approved.
For more information on loan approval tips or to begin your mortgage application, please contact the Loewen Group Mortgages team at 289-270-1586.