You can take some of the mystery out of the mortgage application process by knowing what lenders are looking for and knowing how to get approved for a mortgage. Here are a few tips on how to get a mortgage approval:

  1. Have your documents readyBe sure to bring in a letter that states your income, pay stubs and ID.
  2. Get a mortgage pre-approval ahead of time– This will help avoid disappointments when you are ready to buy.
  3. Have a good credit score– the higher the score the better.
  4. Have good credit repayment history– a good credit score doesn’t mean much if there’s not enough history of debt repayment.
  5. Buy within your means– you need to qualify for what you buy, ensure it’s affordable.
  6. Have good job tenure– the longer you’ve been with the same employer, the better it looks.
  7. Know your income if you’re self-employed– It needs to be clearly presented to a lender, so be prepared to provide extra documents such as tax returns and Notices of Assessment.
  8. Have a positive net worth- assets look good to a lender.
  9. Don’t change jobs at the last minute– your lender will need the new details and probation can cause issues.
  10. Know where your down payment is coming from A minimum of 5% of the purchase price will be required. The lender will verify your source.
  11. Avoid last-minute large purchases– material changes to your application, including debts, can alter your approval status.
  12. Be honest – mortgage approvals can be withdrawn if a falsification is discovered.
  13. Budget for closing costs– costs can vary, be prepared.
  14. Consult a professional– use their experience to your advantage.
  15. It’s okay to wait– an approval may not be possible right now, that doesn’t mean it’s never going to happen.

While the above tips might make getting a mortgage approval a bit more likely, working with an experienced mortgage professional who can successfully structure your application for acceptance by a lender is the quickest route to home ownership.