Four Tips To Ensure Your Mortgage Application Is Approved the First Time
Over the last few decades, purchasing a house was relatively straightforward, especially if you had a stable job and a sizable deposit. However, in recent years, securing a mortgage has become more stringent due to lending rules and government policies such as the stress test. The stress test was implemented to protect banks and lenders from defaulters, but for novice borrowers, it can be a massive challenge.
If you’re a first-time mortgage applicant, you want to take the time to educate yourself about the mortgage approval process and qualifications before hastily applying for a mortgage. To present yourself as a financially stable borrower in the eyes of the lender and increase the likelihood of a mortgage approval, there are also a few tips and tricks you can follow.
As a mortgage agent, I want to steer you in the right direction and help speed up your mortgage approval process. To place you in a favorable position, I have compiled a list of four tips to ensure your mortgage application is approved the first time.
1. Fill in as many details as possible.
When you fill out your mortgage application form, put in as many details as possible so that the file can get assessed properly. This also increases your chance of getting approved. If you are unsure about something, it’s best to do research or ask an expert instead of leaving it blank.
2. Include all assets/liabilities.
The mortgage application form has an itemized list of the assets and liabilities to determine whether borrowers can afford monthly mortgage payments. As a borrower, it is vital for you to mention all your assets and liabilities in the form. This includes down payment, cash money, stocks and bonds, loan payments, alimony, child support payments, etc.
3. Ensure all your documents are signed.
The final documents that obligate you to your mortgage and home purchase require a lot of signatures. Apart from your application form, you also need to sign the closing disclosure documents that detail the conditions of your mortgage and fees. However, before signing any document, it is recommended first to read it carefully.
4. Return all the documents as per the checklist.
Once you have filled out all the forms, make sure you double-check the document checklist to ensure that you have not left anything out. Also, keep in mind that your documents have to be returned in proper order and no document should be missing.
To improve the chances of getting your mortgage application approved the first time, reach out to Annissa Nandlal at Mortgages By Annissa. As an experienced mortgage agent in Brampton, Ontario, I have guided numerous clients through the mortgage application process and helped them get approved for the mortgage they want. I offer my mortgage services and solutions for home purchases, renewals, refinancing, and mortgage switches.