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A First-time Homebuyer’s Guide to Mortgage Approval

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Are you on the lookout to buy your first home? If yes, we know how anxious you might be feeling about your home-buying experience, especially getting approved for a mortgage. Buying a new home is an expensive investment for first time buyers and requires a lot of research and market insights. 

When it comes to choosing a first time homebuyers mortgage in Abbotsford, make sure you are well-prepared and have adequate information needed to make an informed decision. If you are considering applying for a residential mortgage, here are a few aspects to consider:

  • Calculate your income and monthly debts

The first step toward applying for a mortgage is to keep track of your monthly income and debt payments. Begin collecting these because your mortgage lender will very certainly need to see them when considering a loan offer. 

Getting approved for a mortgage somewhat depends on meeting specific income and debt ratios. Lenders use these percentages to decide whether you can afford your mortgage or not. The amount of debt you owe can influence the amount of mortgage you can acquire. 

  • Obtain your credit history

Before applying for a mortgage, you must get both your credit score and credit history report and ensure that your history statement has no inaccuracies. Any debt or repayment default can have a significant impact on your mortgage approval success rate. 

Not only this, you should avoid applying for new credit in the months prior to submitting your mortgage application. Banks will often be cautious if you suddenly obtain new credit while applying for a mortgage.

  • Compare mortgage products from lenders

Before you end up finalizing a mortgage deal, make sure you compare the mortgage products from various banks and private lenders. Begin the procedure by calling your local banks and lenders, and requesting a mortgage estimate or confirming the interest rate they are offering. You may also compare prices online. 

When comparing estimates, keep in mind that banks include closing charges in the total cost of the mortgage, so always ask about their policies before choosing a deal. If you need help finding a good mortgage rate, consider contacting a mortgage broker in Abbotsford.

Conclusion

Though purchasing a home might be a costly and daunting process, it is surely going to be one of the most rewarding purchases you ever make in your lifetime. You will be able to discover a mortgage that works for you and your family if you are realistic about the size of the mortgage you can afford and follow the procedure from start to finish. 

An award winning mortgage brokerage can help you bring your dream vision of owning a home to reality by getting you approved for quick and easy funding. Sandhu & Sran Mortgages is your trusted choice for residential, commercial, construction, and first home buyer mortgage approval in Abbotsford. With years of industry experience and a wide lender network, we can get you approved for a competitive mortgage in no time.