Buying your dream home is exciting, applying for the mortgage on the other hand, can seem tedious and overwhelming. Unless you’re planning to pay in cash this process is inevitable, so let’s go through four simple tips to help make sure you get approved.
It’s important to note that I encourage you to start this process before you start looking for your dream home, as some of the necessary preparation can take longer than expected. In addition, interest rates have begun to rise, and you want to ensure your pre-approval stays up to date. As a real estate professional, it’s devastating to see clients fall in love with a home and later be told they don’t qualify for a mortgage of that value, so I’m hopeful these tips will help keep your home buying experience a positive, and exciting one!
- Get pre-approved. When you first decide you’d like to buy a home I suggest you go and get a pre-approval right away. This will help you understand the price range in the Kelowna area that’s available to you and your monthly mortgage payments associated with the amount you’re approved for.
- Make a large down payment. This likely isn’t what you wanted to hear, but a larger down payment means you’re asking to borrow less money and therefore your chances of being approved for the mortgage is higher. Also keep in mind that the more you put down, the less you’ll pay in interest.
- Keep your day job. Lenders look at your longevity with a company when making a decision, and if you’ve had the same employer for a significant amount of time it can help your application get approved.
- Ensure your credit is in good standing. A lender will be less likely to approve your mortgage if you have a low credit score, and the interest rates will be higher if they do. You can increase your credit score over time with simple steps such as: paying your bills on time, paying off your credit card or existing loans and by not using all of the credit available to you. The higher your credit score, the lower your interest rate will be.
I hope these four tips for getting your mortgage approved are helpful. If you’re ready to find your dream home and get the pre-approval process started, please don’t hesitate to get in touch with me - I can help connect you to the mortgage professionals that I work with, and then help you find the Okanagan home of your dreams!