How do You Improve Your Chances of Being Approved for a Mortgage?

How do You Improve Your Chances of Being Approved for a Mortgage?

Buying a home is one of the largest investments you will make in your lifetime. Most of us will need a mortgage to help us become homeowners and while there is no guarantee that you will get approved for the mortgage that you want, there are steps and actions you can take beforehand to make yourself less risky to potential lenders. Keep reading to find out the best way to improve your chances of landing a mortgage.

Always Check Your Credit Report

The first thing lenders will check is your credit report. This is a detailed report of your credit history. You should be familiar with your own credit report and score if you are considering applying for a mortgage. Your credit score will determine whether or not you qualify for a loan and at what rate.

Look For Mistakes

Once you get your credit report, you should take a look at all the details on it and make sure there are no errors, as these could negatively impact your credit. You should watch out for any of the following:

    • Debts that have already been paid or discharged
    • Information that does not belong to you due to a clerical mistake
    • Information that is not yours due to identity theft
    • Information from a former spouse that shouldn’t be there
    • Information that is out of date
  • You should check your own credit report six months before you plan to shop and apply for a mortgage so that you have time to fix mistakes. If you do find a mistake in it, contact the credit agency as soon as possible.
  • Work on Improving Your Credit Score
  • Your credit score is the single number that lenders will use to evaluate your credit risk and determine how reliable you are at repaying a loan. The higher the credit score you have, the better you will look as a borrower. To get a higher credit score, work on paying off all of your debts, paying your bills on time and keeping your credit card and revolving credit balances low.
  • Decrease your Debt-to-Income Ratio

The debt-to-income ratio compares the total amount of debt that you have to your overall income. It’s calculated by dividing your total recurring monthly debt by your gross monthly income and shown as a percentage. Lenders look at this percentage to measure your ability to manage the payments you make each month, and it will also determine how much house you can afford.

Make A Larger Down Payment

A large down payment will show your lender that you possess the ability to save large amounts of money. It will reduce the loan-to-value ratio, and this will increase your chances of getting the mortgage that you want.

While there are tight lending practices when securing a mortgage, there are things that you can do to increase your chances of qualifying for a mortgage, especially if you get a head start. If you have any questions about your mortgage, contact Colin Bruce, a mortgage specialist in Edmonton.

mortgage specialist edmonton

SUPPORTING THE ROCK & ROLL SOCIETY WITH K-97

The Collin Bruce Mortgage Team is stepping up to continue K-97’s support of the Rock and Roll Society of Edmonton’s Centre for Arts and Music (CAM); aimed at mentoring a new generation of musicians, with a special focus on vulnerable youth in our community.

With a focus on youth at risk in our community, CAM reaches out to children who would otherwise have few opportunities to participate in the arts. Our goal is to reach them during critical after school hours through music. At CAM, children learn how to write songs, play instruments and perform together on stage. In the process, they earn self- esteem, respect for themselves and others, and much needed self-confidence.

DONATE TODAY

Testimonials

“Collin and his team have been there twice now for us and have provided us with knowledge and service to best serve our needs. They are a great group of people that listen to you and provide excellent advice. We cannot thank them enough for their outstanding customer service.”

Jon (Parkland County)