A mortgage is probably the largest loan you’ll ever take out in your whole life. It’s certainly is a big financial decision, and the mortgage application itself can be a stressful and frustrating process especially if your financial standing is less than stellar. Thankfully, there are things you can do to reorganize, regroup, and stay on top of your financial affairs to drastically improve chances for getting approved for a mortgage.
Here are five tried-and-true strategies recommended by Rob Campbell, a mortgage broker based in Guelph, Ontario.
Strategy #1: Get a Handle on Your Credit Score
“Your FICO credit score is perhaps the single-most crucial thing lenders take a look when gauging your credibility,” asserts Rob Campbell mortgage brokerage. If your credit rating is perfect, lenders are willing to approve your home loan application without a second thought. If it’s anything less than perfect, you’ll probably have to wait out as they consider other aspects of your application.
The good news is that you can improve your credit score by paying all of your bills and credit card debt, as well as making other monthly payments on time. Make sure that you don’t open new accounts prior to applying for a mortgage as hard inquiries do affect your credit rating.
Strategy #2: Save, Save, Save
There’s nothing that pleases lenders quite like having decent savings. For one, most lending companies and traditional banks often require that you have some money for down payment. That means you will have to be able to make a lump sum payment up front.
Strategy #3: Cut Your Debt
Lenders also look at your debt to income ratio (DTI). So, on top of having plenty of savings; be sure to cut your total debt to improve your DTI.
Strategy #4: Work with Professional Mortgage Broker
Someone like Rob Campbell is a mortgage broker with more than a decade in the industry. This is a professional who can act as a go-between, negotiating on your behalf with the lender. With Rob Campbell as your mortgage broker, you can rest assured you’ll get approved fast and get the best mortgage rate and terms.
Strategy #5: Consider a Less Pricey Home
If you have decent savings, fairly good credit, and minimal debt and still your mortgage application gets turned down, you might be biting more than you can chew. You are better off setting your sights on a more affordable house.
Are you looking for a hassle-free mortgage application process? If yes, look no further than Rob Campbell, a mortgage broker who’s trusted throughout Guelph.