All you need to know about mortgage pre-approval

Getting approved for a mortgage isn’t simple. You need to undergo a screening process, where lending companies and institutions will assess your lending power. In addition, we suggest a few ways to secure your approval. 

Credit score

Before you apply, check your credit score. If there are any errors, make sure to fix them on time. A good credit score will make a huge difference, as it will help you get lower interest rates. 

Stable income

When planning to get a mortgage, make sure not to switch between jobs. A secure and steady income is what lenders are after to make sure that you will make your payments on time. New jobs include a trial period and might not result in permanent employment, so it is better to avoid this before signing the mortgage. 

Calculate your costs

If you thought that the down payment is the only thing you should save for, you were wrong. Don’t forget to include the closing costs connected with the real estate purchase. These might cost anywhere from 3% to 4% of the overall cost. 

Avoid massive purchases

Another large purchase will add up to your debt. When the chosen mortgage company reviews your application, other debts will reduce your borrowing power. Since the lender will review your existing debt, make sure to pay it down.