Five Tips For Getting A Mortgage
Are you in the process of buying a home and trying to figure out the best way to get a mortgage? Securing a mortgage can be daunting, especially if you’re new to the process. It requires an understanding of credit scores, debt-to-income ratios, and the paperwork involved. This can be overwhelming if you don’t know what to expect. However, with the right preparation and a few simple tips, getting a mortgage can be much easier than you think.
As an expert in the field, Nancy Tychowski Mortgage Consultant has written down five tips for getting a mortgage.
Tip #1: You must check your credit report
What is a credit report? A credit report is a summary of your borrowing history and habits. It’s something mortgage lenders will take into account when deciding if you’re a viable borrowing candidate or not. Review that report thoroughly and make sure there are no red flags, like delinquent debts in your name. If there are, it pays to work on resolving those matters before moving forward with a mortgage application.
You’ll want to make sure your credit report doesn’t contain errors (like delinquent debts you’ve since settled up) that could work against you. If you find them, you’ll want to correct them before applying for a home loan.
Tip #2: Find out what your actual credit score is
Many consumers are surprised to learn that their credit reports don’t list their actual credit scores. To get that number, you may need to log into Equifax. You may need to pay for it.
Either way, it’s important to know what your credit score looks like and make sure you’re happy with that number. The higher it is, the more likely you are to not only get approved for a mortgage but lock in a competitive mortgage rate on that loan. In fact, if you’re able to get your credit score in the 680s or higher, you’ll probably have the best rate any given lender is offering.
Tip #3: Lower your debt load
The more debt you have, the more a lender might hesitate to give you a mortgage, especially if that debt eats up a lot of your income. You may want to consider paying off some debt before submitting a mortgage application. And if you’re going to do so, focus on credit card debt first. Lowering your credit card debt could not only help your debt-to-income ratio improve, but it could also raise your credit score.
Tip #4: Increase your income with a side hustle
Your income is a factor lenders will use to see if you qualify to borrow a home. Since home prices are stable and prices of homes have not decreased significantly due to the rate increase. Additionally, there is a shortage of homes listed on the market. You may need to negotiate the purchase price. That’s why it could pay to boost your earnings with a side hustle, whether it’s working shifts at a local store on weekends or driving for a ride-hailing company a few evenings a week.
Tip #5: Hire a professional Mortgage Broker to shop around for the rate
When it comes to giving out mortgages, each lender sets its own rates, which are the fees you’ll pay to finalize a home loan. Closing costs with the lawyer will vary, and this is where you will need to have a professional to show you around. It pays to gather the cost, so when you are ready to sign the papers with the lawyer, you are good to go.
If you are looking for a licensed mortgage broker in Burnaby, British Columbia, reach out to me at Nancy Tychowski Mortgage Consultant. Being a dynamic and highly analytical professional with a background in banking and financial compliance, I have more than fifteen years of experience in the financial sector and recent success in Financial Compliance. I save you time and money by shopping for the right mortgage solution that fits your current needs, whether it’s now or in the future. I work for you, not the bank.
I offer services like self-employed mortgages, debt consolidation mortgages, first-time home buyer mortgages, home purchase assistance, mortgage renewal, mortgage refinance, mortgage loan application assistance, mortgage rate shopping assistance, new home mortgage for the future, new to Canada mortgages, reverse mortgages, residential mortgages, and second mortgage financing. I offer my services to clients across Chilliwack, Coquitlam, Mission, Kelowna, Kamloops, Burnaby, Richmond, Victoria, Nanaimo, Abbotsford, Surrey, Langley, West Vancouver, North Vancouver, Vancouver, and the surrounding areas of British Columbia.
Get in touch with me today!