What to do Before Applying for your Mortgage Approval

May 5, 2021

It is important to dot your i’s and cross your t’s when hunting for a new home.  For the best possible results on the Victoria BC market, you need to be prepared.  Many buyers believe that obtaining a mortgage agreement is a step that follows their property search. However, you can raise your chances of being chosen as a new homeowner in this competitive market. Obtaining a mortgage pre-approval, for example, is one way to do this. That way, home sellers will recognize that you are a legitimate buyer with the finances arranged to afford the house. Before enjoying the adventure of viewing real estate property listings, make sure you set yourself up for the best possible mortgage agreement. As a result, you will open your options for the range of homes you can afford. So, here’s what to do before applying for your mortgage approval:

applying for mortgage approval

Manage Your Finances

Before your mortgage application process begins, organize your finances so you can earn approval for a loan that will get you the type of house you want. Your lender will want to arrange a pre-approval with a reliable home buyer who offers proof they have the means and accountability to reassure they can afford mortgage repayments.

Settle Your Debts if Possible

If you apply for your mortgage with massive debt from schooling or other investments, you’ll end up limited in your mortgage rate options. Take time to chip away at your debts, so you can enter your mortgage agreement without the baggage of other repayments. This will make you a more appealing candidate for a mortgage pre-approval.

Save for a Sizable Down Payment

With your debts reduced, the next step to financially preparing for your mortgage pre-approval is to save enough funds for your down payment. By having the liquid savings for a large down payment, you will need to borrow less for your mortgage. 

Build a Strong Credit Score

Your credit score demonstrates how you manage your credit and bill payments. You’ll want to have a strong score when applying for your mortgage so you can show that you are a reliable borrower. It’s best to score around 700 and higher to appear credible. One simple way to maintain a healthy score is to pay your bills and credit card charges on time. 

Shop for Your Lender

When choosing who to arrange a mortgage agreement with, know that you have options. Do your research for lenders around Victoria so you can find the best pre-approval that will help you find the house of your dreams. Look for which lenders have lower mortgage rates and agreement terms that work the best for you. 

 

Work With the Top Realtor in Victoria BC

Buying a new home is an exciting but challenging endeavor. You set yourself up for success by being prepared. For more advice on preparing for your home purchase, work with the best realtor in Victoria BC. Brad MacLaren is a certified expert in our local real estate market. You will certainly be satisfied with your next home purchase if you have his support.

Contact Brad today to find where to plant your roots next.