Buying your dream home is one of the most exciting things that you’ll ever do. But it’s also one of the most stressful things you’ll ever have to go through. One recent survey revealed that about 40% of people believe that buying a home is actually the “most stressful event in modern life.”
Getting a loan might make it easier for you to afford your home but the process of getting an approved loan can be quite stressful. The uncertainty over whether or not you’re going to get approved for a loan is often too much for some people to take.
Here are some tips that will help you get your hands on an approved loan so that you can make buying your dream home a reality.
Consider Getting Pre-Approved for a Mortgage
If you’re getting ready to look around for your dream home, do yourself a favour before you get started and seek pre-approval for a mortgage. It doesn’t take long and could save you from falling in love with a home you can’t afford. When you get pre-approved for a mortgage, you’ll know about how much you qualify to borrow to buy a home. This will help you come up with a house-buying budget and prevent you from looking at homes that are too expensive and help you focus on more affordable homes.
Figure Out Ways to Bring Your Credit Score Up
There are so many ways to bring your credit score up in a relatively short period of time. You just need to be willing to work at it. You can improve your credit score by:
- Disputing any errors that you find on your credit report (they’re more common than you might think!)
- Paying off as much debt as you can
- Opening up new lines of credit and being responsible with them
Steer Clear of Making Any Major Career Changes
When you apply for a home loan, you’re going to need to include information about your employer, your employment history, and, of course, your salary. Lenders are going to use this information to decide how much money to lend you. If you choose to make a major career change right in the middle of applying for a home loan, it’s going to throw a wrench into the operation. You could very well miss out on the chance to buy a home because of it.
Look Around for the Right Mortgage Lender
A lot of mortgage lenders use the same basic criteria for deciding whether or not to extend loans but there are some that are stricter than others. Just because you don’t qualify for a mortgage through one lender doesn’t mean another one won’t give you the loan you need. Do your due diligence and look around for the right mortgage lender based on your specific situation. Doing this could be the key to you getting the approved loan you need to make your dream home a reality.
Looking for the right lender but don’t know where to start? We can help.
We are a boutique financial services company that offers over 25 plus lenders with over 500 products to choose from, catering to all types of borrowers and our mortgage brokers work hard to get even the toughest loans approved. With over 10 years’ experience in the banking finance industry, we offer the best solution for our clients.
