Obtaining a mortgage pre-approval can be a valuable first step to take before you begin your house search. To get your mortgage pre-approved, you will need:
- Your personal information, including identification such as your driver’s license;
- Details on your current job and proof of your salary;
- Information about your bank accounts, financial assets, current loans and other debts;
- An indication of how much your down payment will be and where the money will be coming from; and
- Proof that you have enough money to cover the costs of closing the sale (usually between 1.5 to 4% of the cost of the house).
Trouble Qualifying for a Mortgage?
Sometimes, after everything has been taken into account, you may find that you cannot afford the house you want. If that happens, you may want to:
- Pay off some other loans or debts;
- Save up for a larger down payment; and/or
- Revise your target house price.
Your credit history tells mortgage providers about your financial past and how reliably you have paid your debts and bills. If you have no credit history, it is important to start building one — for example, by applying for a credit card. If you have a bad credit history, you will need to re-establish a good credit history by making debt payments regularly and on time. Consider getting some credit counselling if you have a history of poor credit or talk to your lender to discuss options.
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