Are you ready to apply a mortgage? You’ve finally reviewed your finances and the home market, as well as examined the many financial options available to you. And now, you made the decision to apply for a mortgage. After applying, comes the waiting period, which is one of the most difficult aspects of the house-buying process as it determines whether you have been approved or denied a mortgage. You can stay confident about your chances of approval if you have followed the right procedures and filed an accurate application.
In this blog, our Abbotsford mortgage broker has discussed a list of key things to consider after applying a mortgage:
- Avoid expensive purchases: You may have had your eye on a high-end car. It’s possible that you wished to buy new furniture for your new house. Stay away from big purchases. This is due to the fact that any large cash outflow may have an effect on your overall financial situation. Keep in mind that taking out a $500,000 mortgage also means taking on additional monthly responsibilities, which will result in a larger debt-to-income ratio.
- Avoid co-signing any other loan: By co-signing any credit applications or loan, you might be able to assist your family member or a close friend in getting authorized for a line of credit or a vehicle loan. However, this might be risky because co-signers are legally bound to pay back these loans in the event that the borrower is unable to meet their financial responsibilities.
- Avoid trying to get new credit: One thing you should avoid doing right now is applying for new credit, whether it be a personal line of credit or a new credit card. A check on your credit report will indicate that you have applied for new credit, even if it is something you can afford. This could have an impact on your credit score or rating. Your chances of getting a mortgage could be impacted by even a small decrease in the credit score. Avoid looking for other credit options until after you’ve closed on your purchase and try maintaining a high credit score.
- Hold off on switching bank accounts: It’s possible that a promotion or better interest rate will tempt you to switch banks, but this is something that should wait. Because mortgage lenders want to source and track your assets and debts, which are made easier with a steadily held bank account.
- Preserve Your Credit: It is advisable to avoid closing any credit accounts or breaking up your credit card into small pieces. Keep in mind that mortgage lenders consider not just your payment history but also the duration of your credit history. Financial institutions and mortgage brokers focus on your overall credit consumption as a percentage of your available credit.
Conclusion
With the increasing strictness in getting mortgages approved and a complex documentation process, applying for a mortgage has become harder. If you are looking for a reliable mortgage broker in Abbotsford, Surrey, Calgary, and Edmonton who can help you with quick mortgage approval at a competitive interest rate, rely on none other than Sandhu & Sran Mortgages. We are well versed with mortgage pre-requisites and can get you approved for a residential mortgage in Abbotsford in no time.