Get Approved Before You Look
Get Approved for Your Mortgage: How to Keep It Fast and Simple
Whether you’re a first time homebuyer or a seasoned vet, the application and approval process can be intimidating if you aren’t prepared. However, a little bit of preparation can go a long way in reducing stress and aiding in a quick mortgage approval.
Remember, every application is different depending on the lender, current real estate climate, your credit history, and other factors that are impossible to predict without submitting an application for approval.
The steps below are a guideline. Your individual situation may differ. We recommend that you consult with one of our mortgage professionals to get a complete list of items specific to your application.
Before Applying for a Mortgage
Before you apply for a mortgage you may find value in getting prepared.
- Know your credit score and credit bureau – The higher your credit score, the better the odds of a fast approval. If your credit score seems abnormally low, check for irregularities or errors on your credit report. If you find some, take steps to resolve those issues prior to submitting a mortgage application. The higher your credit score, the less risk you represent to a lender. Spending a few weeks resolving any credit issues that may be present will go a long way in speeding up the approval process. Generally speaking, a FICO score above 700 will help facilitate a smooth application and approval.
- Organize your documentation – Have your important documents ready to go. You can expect a lender to ask for:
- Letter of employment that verifies your position, salary, start date, and whether or not you are on probation
- Most recent pay stubs. Typically, the two most recent stubs are all that is required.
- Notice of assessment. This is less common, though it will be asked if you are self-employed or have significant income from non-employment sources.
Tips When Applying for a Mortgage
When you are applying for a mortgage, follow these tips to keep the process as simple and hassle-free as possible:
- Avoid making large purchases during the application process. If you are planning on buying a new car, for example, it would be best to wait until after your mortgage closes. If you are unable to wait, disclose this information to your mortgage broker so as to ensure that the lender isn’t surprised by the sudden change to your financial situation.
- Respond to all communication as quickly as possible. Delays in communication can create additional stress on all sides, especially as the closing deadline approaches!
- Provide all requested documentation as quickly as you are able. Your mortgage broker will walk you through the documentation required either during or shortly after the application is made. It is best to provide these documents as soon as possible in order to ensure there are no delays in getting approved.
- Try to avoid moving large sums of money around if it is being used for the down payment. Your lenders will want to see a history of where the money came from (per Canada anti-fraud/money-laundering laws). To keep things simple, try to leave the down payment in one account throughout the process.
- Avoid taking on new credit while waiting for mortgage approval. Your mortgage approval takes your credit history and current credit accessibility into consideration. If you apply for $20,000 in new credit cards it may change circumstances in relations to your mortgage. Generally, if you are able to do so, it is best to wait until after your mortgage has been finalized before seeking additional credit.
Ready to Apply? We’re Here to Help!
Our mortgage professionals have the experience and relationships needed to keep your application process and smooth and simple one. If you’re ready to apply for your mortgage, let’s connect and get the process started.