As Edmonton and the greater Alberta area experience growth, the number of residents owning a home increase as well. At this moment in time, we are seeing a very competitive mortgage environment, more and more people have started taking advantage of the situation and are now on the process of becoming home owners.
Since you’re reading this article, I can safely assume you are one or will be one of the people to take advantage of this great time. Kudos to you! Below are 5 easy steps to boost your mortgage chances for you to finally buy your Edmonton dream home.
- PREAPPROVAL EXERCISE: This would be the most obvious place to start. It is of high importance to get preapproved by your bank before you start looking for your dream home.
An overall awareness of your financial health is prudent in this phase of the process, especially before approaching a bank. One great way to check your financial health is to prepare all the pertinent documents such as bank statements, income stubs and other papers that show income. This would basically give you a glimpse of where you are in terms of your finances.
- CREDIT REPORT EVALUATION: Buying a home is one of the biggest investments you’ll ever make in your life so being thorough in checking your financial status in life should be one of the top priorities.
Evaluate or check your credit report before getting a mortgage. You never know, there might be things that would still appear outstanding even though you have already repaid it. Worst case scenario, you might already be a victim of identity theft and you don’t know it-this is when people use your name to conduct fraudulent financial activities.
This easy step would help you big time in boosting your chances of getting mortgage and would even prevent any financial loss in the mortgage application process.
- PAY OFF YOUR DEBT: There are two things in life that is certain; debt and taxes. And at this time in your life, paying off your debt is as crucial as paying taxes.
Here’s the trick, in order to get a good mortgage rate, pay off the smaller debts first-easy right! Downside would be that you’ll be able to afford a smaller amount of down payment at closing. Upside is that you’ll have lower interest rate. Remember that is very important to minimize your overall debt if and when you’re refinancing your dream home.
Lastly, if you’re a Game of Thrones fan, do what the Lannisters’ does well; The Lannisters’ always pay their debt.
- SETTLE PAPERWORK: This goes in tandem with the first two steps. Settling all your financial paperwork, digging through the rims of documents is necessary in boosting your chances of getting a mortgage and would even help expedite your application process.
Typically, banks would ask for your past 3 months bank statements and pay slips.
- DEPOSIT INCREASE: If you are able to do the previous steps then this would be the touch down phase. Keep in mind, the bank would highly lend money to you and provide a lower interest rate if you could put down a bigger deposit.
Take note, at least 5% of the selling price of the house is what you need for a mortgage deposit-minimum.
If this last step is a bit tough right now, fear not, there are a variety of mortgage structures that would allow your family members to secure their savings against your mortgage or even act as guarantors. Check with your bank or mortgage brokers. Advise: Be nice to your mom, dad and siblings.
Easy steps as it may seem but these would provide an enormous impact in boosting your chances of getting a mortgage.
After you are done with these steps, it is highly advisable to seek the help of experienced mortgage brokers to assist you in finishing up the work. Team Leading Edge makes it a way of life in helping clients with their mortgage needs. As professionals, they live and breathe real estate and assisting clients buy their first homes is a daily affair. Call Team Leading Edge to get you started in that mortgage.
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