Common mistakes when applying for a mortgage and how to avoid them
Applying for a mortgage….It’s a process that may seem complicated and daunting, but it doesn’t need to be. Knowing some of the most common mortgage mistakes, and how to avoid them will help make for a smooth process on your way to securing your mortgage. With some preparation and planning ahead of time, you can eliminate stress while saving yourself time and money along the way.
Here are a few of the common mistakes made when applying for a mortgage and how you can avoid them:
- Not addressing your credit
Having good credit may not be the only factor in getting approved for a mortgage, but it is one of the most important. If you know you have credit issues, you should be doing what you can to address those issues.
Even if you think you have good credit, you should periodically check your credit report with the two main credit bureaus (Equifax and TransUnion). This way, if there is a mistake on your credit report, you can address it early to avoid problems when you apply for a mortgage.
- Not shopping around
Many people when they apply for a mortgage, automatically head to their bank or financial institution. Without shopping around, they will have no idea of whether they are being offered the best rates or terms for their mortgage.
One of the primary benefits of working with a mortgage broker is that they will shop around on your behalf, comparing multiple lenders’ rates and terms.
- Not disclosing all information to your mortgage broker
Being upfront about your specific needs and situation will help your mortgage broker find you the best mortgage solution for your specific situation.
- Not having all your documents ready and organized
Having your documents ready and organized will save you time and stress when you are ready to apply for a mortgage. The last thing you want to do is be on the hunt for documents and slow down the process while submitting a mortgage application on your dream home. Filing your taxes on time and keeping a record of your income and earnings statements will help ensure that your application process is smooth.
If you are self-employed or new to Canada, let you mortgage broker know as they may ask you to collect additional documents depending on your situation.
- Not having proper proof of income
Having good credit alone will not automatically qualify you for a mortgage. You need to show that you can pay off the loan. Have proper proof of income ready such as income statements or tax documents
At CYR Funding, we are here to help you every step of the way with your mortgage application. If you have any questions or would like to start the process of applying for funding, contact us today.