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Tips to Help you Get a Mortgage Pre-Approval

Akal Mortgages
Tips to Help you Get a Mortgage Pre-Approval

This last year has been pretty unpredictable when it comes to buying a house, especially with the rates and prices of houses changing all the time. Given the current market, you may be wondering what is necessary to get pre-approved for a mortgage. Here are a few tips:

Find the right mortgage professional

Working with the right mortgage broker can make a huge difference when you’re making the biggest purchase you’ll probably ever make. Find an experienced broker that you feel comfortable with. Your broker will be able to answer any questions you have and make sure that you have what you need to get your mortgage pre-approval.

Figure out how much of a mortgage you’re comfortable with

The total price of a house can be hard to really digest, but the monthly or bi-weekly payment is much more manageable to understand and figure into your budget. So the first thing you need to do is determine exactly how much mortgage you can afford. This could mean working with a broker or financial advisor to really dig into your budget and income amounts. It’s also important to figure out property taxes and what it will cost to run your home every month.

Check into your credit

 Do you know what your credit score is? If you don’t, you should contact one of the main credit bureaus to find out. If your credit score is low, you may want to look into ways to increase it. A better score ultimately means a lower interest rate when you go to get your mortgage, which means you will end up paying less. Your broker will formally pull your credit score to make sure there aren’t any surprises or unpaid accounts you need to take care of.

Gather your documents

This means putting together your proof of income and any other assets you may own. These documents will be used by your mortgage broker to help you determine how much mortgage you can afford and help with securing your eligibility for a mortgage. There may be other documents your broker asks for, but this will be on an individual basis, and they will let you know when you meet with them.

Think about your down payment

No matter how much your home costs you will need to come up with some kind of down payment. This down payment must be in cash, and it has to be your own money, for the most part. Part of it can be gifted from your parents or other family members, but they will have to confirm it’s a gift and not a loan. There are also other first time home buyer programs that can help out those buying their first home with a down payment. You will need to look into how much your down payment needs to be so that you can ensure you have enough for the purchase of your home. Also, the more down you have the lower your interest rate might be – your mortgage broker can help you with that.

Contact Akal Mortgages today

Do you need help getting pre-approved for a mortgage? If so, contact Akal Mortgages today to speak to a broker.

Akal Mortgages
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