When you are shopping around for a mortgage you often need guidance very now and especially if it is your first time. If your mortgage has been approved and you are waiting to close, there are yet a few things you must be mindful of. Approval of a mortgage is not the end of the process and the lender will also run a credit report a last time to make sure that there have been no changes in the way you use credit. The credit score at this point in time can directly impact the amount you qualify for and also if at all you shall be getting the mortgage. So here are some things you need to keep in mind. State true facts A mortgage application is a lot about honesty. Considering you have been honest about your credit usage and other financials for the mortgage application, there is nothing to worry. The accuracy about things like properties you own, your income, assets as well as debt must be there. If you have been through financial situations such as bankruptcy, foreclosure etc., these too must be disclosed as soon as possible. Pre-approval If you haven't got a pre-approval, it is a mistake and a good time to do so. Since the qualifying requirements keep changing a lot of criteria can impact your mortgage approval such as changes in your credit report, rate change, mortgage product update etc. So getting a pre-approval is a step towards securing your mortgage. Shop around Whether you are buying your first house or second, not shopping around is a big mistake. Shopping around for mortgages, open your options and you get a world of opportunities at your feet. You may end up paying a lot of extra money if you go to a lender who is charging more. This is where mortgage brokers come of use and their services can help you in getting the best deals there are. Savings are a must Not saving money for your down payments is a great mistake many people make. A down payment is a big part of home-buying and is definitely needed during the time of purchase. You may know that the minimum down payment is 5% but 20% is the required amount if you need a good deal on your mortgage. It also means you have already paid 20% of the mortgage amount. So start saving years before you actually intend to buy your first house. Credit mistakes You may be aware that your credit score plays a crucial step in getting your mortgage. So having a healthy financial situation is quintessential to your mortgage approval. Keep your credit card spends within limits and do not miss your payments as these would be reviewed during the time of mortgage approvals. The higher the level of available credit on your credit card the better your chances are of getting that approval. If you are looking to get a mortgage, or have any questions, do write to us at LendX Financial in Brampton, Greater Toronto Area.
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