Helpful Tips to Prepare You Before Applying for a Mortgage
Whether you are planning to purchase a new home, refinance your current mortgage or take advantage of one of the many other available mortgage tools on the market, it’s no doubt that you want the process to go smoothly. After all, the more seamless the process is, the faster you can move into your new home, access your home’s equity or start your rental business.
Did you know that there are certain things you can do to help the mortgage process along? Here are a few of our top tips for preparing for your mortgage application:
- Start building or repairing your credit now.
While there are some great lenders out there who specialize in helping those with less than perfect credit, the mortgage application process will go more smoothly if your credit is good. If you have no credit history, get some. Apply for a credit card and use it – just make sure to pay it off in full each month. If you have bad credit, start taking steps today to repair it.
- Work with a good mortgage broker.
If you have decent credit and a good income, you can usually get a mortgage through your bank; however, this is rarely your best option. Banks are restricted to selling their own products, so that is what they are going to offer you whether it is the right product for you or not. Furthermore, if you are self-employed, new to Canada or have trouble proving your income, it can be difficult to get approved by a bank.
Instead, start working with a mortgage broker who will shop around on your behalf and help you find the best lender and best type of mortgage product for your situation.
- Gather documentation.
No matter what type of mortgage product you are applying for, you are going to need a certain amount of documentation. Having this ready when you apply for your mortgage is going to make the process go much more smoothly.
If you applying for a first mortgage, you will require the MLS listing, proof of your down payment, income statements, etc. If you are applying for a refinance, you will need statements from your existing mortgage, as well as tax and income documents. Not sure what you need? Ask your mortgage broker for a list and check items off the list as you gather them.
- Be honest.
If you are embarrassed about your financial situation, it can be tempting to want to omit details but don’t do it! We cannot stress this one enough! In order to help your mortgage broker help you, it is important to be upfront and honest about your situation. Only then, will they have the information they need to give you the best help and advice possible.
Applying for a mortgage can seem complicated, but like most things in life, it is much easier if you are prepared. As mortgage experts, the team from CYR Funding will help you every step of the way in your mortgage application. If you require assistance in preparing for a mortgage, give us a call today.