5 Key Items for a Quick Mortgage Approval

Want a Quick Mortgage Approval? Come Prepared With These 5 Key ItemsAre you finally getting into the real estate market? There are a few key items you’ll need to prove your reliability to a mortgage lender.

Previous Tax Returns

To ensure the earnings information you’ve provided to the lender, you’ll need tax returns for the two years prior to your mortgage application. In addition, you may also be required to provide your W-2s as backup documentation.

Bank Statements

For your down payment, you’ll need to present bank statements to show you have a cushion in case interest rates increase. If you do get money gifted to you for your down payment, you’ll need a letter to prove you’re not indebted to the provider.

Recent Pay-stubs

It can be much more difficult to get approved for a mortgage if you have a patchy work history or happen to be self-employed. You’ll need 2 months of recent pay stubs to prove consistent employment. The pay-stubs provided should also be an accurate reflection of the salary you’ve provided on your application to ensure no discrepancies.

Investment Statements

It’s certainly a good sign to the lender if you have a healthy balance in your checking and savings accounts. But you’ll also need to provide any statements for mutual funds and other investments. While they may not be necessary to prove financial soundness, they will help with approval if you have a lot of money squirreled away.

A Listing Of Debts

A lender will also want to know about any outstanding debts like auto loans, credit card payments or student loans. This will give the lender a good sense of your honesty and your ability to manage your mortgage.

Mortgage approval may seem like a time-consuming process with no certain end. By having the appropriate documentation and being upfront about your debts, you may be able to speed up the timeframe. If you’re currently perusing your mortgage options, contact us for the inside scoop.

What You Need To Know About Getting Your Next Mortgage

Yes, It's Getting Easier to Get a Mortgage. Here's How You Can Take AdvantageIt can be hard to stay on top of the changing real estate market from day-to-day. As a matter of fact, there are more available mortgage products out there than ever before for many kinds of homebuyers. If you’re wondering how you can take advantage of easier lending opportunities and strike while the iron is hot, here are some things to consider.

Take Care Of Your Credit

While many regulations on mortgage applications may have been loosened in recent years, having a better credit score will still enable you to qualify for a mortgage much easier. Instead of risking it, ensure that you’ve obtained a copy of your credit score and are aware of where you stand as a financial risk. By working on your credit and correcting any errors on the report, it will be that much more likely to have your mortgage application approved.

Saving For A Down Payment

It’s often said that 20% is the ideal amount to put down in order to avoid private mortgage insurance, but it’s not the required amount in order to invest in a home. While it may save money in the long run to put more money down, there are many opportunities for putting a lot less down and still being able to purchase. You may want to hold off until you can save up for your down payment, but possibilities do exist for mortgages with as little as 3.5% down.

Dealing With Closing Costs

Saving up for a down payment and deciding to invest in a monthly mortgage payment is a significant commitment. Adding mortgage closing costs to that can be a bridge too far for many potential homebuyers. Fortunately, many lenders are offering the opportunity for closing costs like origination and attorney fees to be included in the total cost of the loan. While this will bump up the amount of your monthly payment, it can make a mortgage more feasible from the start.

For many people, there’s a lot of stress that goes along with applying for a mortgage, but with lower down payments required and closing costs included in the total price, getting approved has become a lot easier. If you’re currently in the market for a new home, contact us for more information.

Self-Employed 101: How To Get Mortgage Approval

Self-Employed? Here's What You'll Need to Get a Mortgage ApprovalThere’s a lot of flexibility and personal freedom associated with self-employment that can be a great benefit to your lifestyle and your pocketbook. However, because of the somewhat unpredictable nature of self-employment, it can make acquiring a mortgage a little more difficult. If you’ve recently become self-employed or have been in the game for a while, here are some things you may want to consider before submitting your mortgage application.

Putting More Money Down

20% is often considered the magic number when it comes to the down payment because this will allow you to avoid homeowner’s insurance. However, if you’re self-employed, you may want to consider putting even more money down. This will be an even stronger signifier to lenders that you’re prepared for homeownership and in control of your finances. While your down payment will provide you with instant equity, a higher payment will also lower your monthly cost and make your finances even more secure from month to month.

Minimizing Your Debt

The amount of debt you have can adversely affect any mortgage application.  But in the event you’re self-employed, a high debt load means even more money is being paid out of a salary that is not necessarily predictable. By paying off the debts you can before applying for your mortgage, you’ll be able to invest that much more of your hard-earned money into your monthly payment without breaking the bank and cutting monthly expenditures.

A History Of Self-Employment

Being self-employed means you’ll have more to prove to your lender. But if you have a spotty self-employment history and long periods without bringing in any income, this will make it even harder. Instead of jumping into the mortgage market soon after becoming self-employed, try to have at least two years of successful self-employment behind you. By being able to prove this, the lender will see that you’re a solid financial bet and an experienced professional who will be able to find work when it’s required.

The nature of being self-employed and the fluctuations in income that can come along with it can make a mortgage lender nervous. However, by having a solid history of self-employment behind you and minimizing your debt load, you’ll be able to prove that you’re serious about home ownership. If you’re currently perusing the market for a home, contact one of our mortgage professionals for more information.

Mortgage 101: Three Easy Ways To Reduce Your Stress

Applying for a Mortgage? 3 Easy Ways to Make the Process Easier -- and Reduce Your StressThere are more than enough details involved in getting a mortgage and moving into your own home that you’ll want to know how to make the process as seamless as possible. However, there’s a chance you might not be aware of the things you can do to make it a little easier on yourself. If you’re currently looking for a home, here are some things to do before applying to minimize mortgage-related stress.

Get Electronic Documentation

In order to get approved for your mortgage application, you’ll need to provide documentation that will likely include bank statements, federal tax returns and recent pay stubs. But providing or acquiring all of these documents in paper form can require a lot of drudgery. Instead, get your documentation together and ensure it’s in electronic form so it can be easily accessed or sent from anywhere. This means you’ll have it on hand as soon as it’s needed.

Choose A House You Can Afford

As a potential homebuyer, it’s easy to be swayed by your dream home. But if your dream home doesn’t come with an acceptable price tag, it’s important to move on to the next best opportunity. It can be very easy to be invested enough in a particular home that you can convince yourself you’ll budget for it, but the market can shift and this can push your monthly payment from difficult to not-doable. Choosing a home at an affordable cost will not only improve your chances of approval, it will also minimize your stress after the move-in date.

Have Your Down Payment Ready

It may be all well and good to know that your down payment money is in the bank, but it’s important that it’s in the appropriate account at least 3 months prior to your application submission. This will help ensure you’ll be seen as financially sound. While it’s great to have money held in investments and RRSPs, it’s important that this down payment money is kept in an easily accessible account where it can be withdrawn without any time delays or financial losses.

There are many different steps and small details associated with obtaining a mortgage, but by having your electronic documentation and down payment ready, you’ll be well on your way to an approval. If you’re currently in the market for a home, contact us for more information.