Prepare Your House Loan Application Foundation
A professional attorney doesn’t ask a question – unless he already knows the answer. Likewise, applicants should anticipate mortgage lender questions to increase their odds of approval. Here are 4 tips to increase your chances of success when you apply for a house loan online.
1. Accurate Credit Score
Your credit score enables lenders to gauge your “creditworthiness”. The higher your credit score, the lower the rate you’ll get for your mortgage,’ said Beverly Harzog, the author of The Debt Escape Plan. ‘Over the course of the loan, a lower rate can save you a ton of money,’ Harzog explained.” Other important factors are your debt-to-income ratio, employment and down payment.
First Step: Get Credit Report
Request your credit report. You can choose between applying for your credit report by mail or the Internet. Canada has two credit bureaus: Equifax and TransUnion.
Second Step: Check Diligently
Once you receive your report, go through it with a fine-toothed comb. Use your banking records as a reference point. Errors might be due to typos, fraud or simply having someone else’s information on your report. Lenders look for “red flags,” like late payments, outstanding liens and court judgments. Certain negative items are supposed to automatically fall off over time.
Third Step: Dispute Errors
Correct credit score inaccuracies to get the best housing loan. You will need to submit a formal written complaint to the credit reporting agency’s dispute resolution department.
2. Rental Records
When you apply for a mortgage online, your rental history might be investigated. After receiving a list of previous addresses, lenders might ask landlords if you were a good tenant, paying your rent on time.
Late payments or evictions may appear on your credit report. If you want to be proactive, then ask your landlord for a written referral letter.
3. Down Payment
Apply for mortgage after saving enough for the down payment and creating ample “available funds.” The “down payment” is how much you will pay initially to create an equity stake in your home. Typically, the standard down payment is 20%. The Canadian minimum down payment for new insured homes priced below $500,000 is 5%; the minimum down payment for new insured homes above $500,000 is 10%. “Available funds” cover closing costs, maintenance and fixtures.
4. Calculate Monthly Housing Costs
Which housing loan types fit your monthly budget? Compare different monthly housing loan payment scenarios with one another.
Applying for House Loan Online
Once you have followed these 4 tips to prepare yourself mentally and financially, you are ready for the final 3 steps of filling out the actual online application form. Gather all of your financial documentation together.
Our free quote process is simple, straightforward and easy-to-use. On the right-hand side of your screen, we offer the application form in red lettering: “Start Your Free Personalized Mortgage Rate Quote!
Step One: General Mortgage Characteristics
The first step is to select your “Mortgage Type” and “Mortgage Amount Needed.” Choose from the following mortgage types: Home Purchase, Home Refinance, Renewals/Switches, Home Equity/HELOC, Private Mortgage, Second Property Mortgage, Investment Property Mortgage, Commercial Mortgage and Agriculture & Farm Mortgage. Just click on the drop-down menu and select.
Then, select the number from the drop-down menu for the “Mortgage Amount Needed.” When you are ready, click on the “Get My Quote!” button.
Step Two: Credit Score Estimate
A pop-up window will appear with the following menus: Mortgage Amount Needed, Estimated Down Payment, Property Type, Property Location, First Time Home Buyer, Credit Rating, Employment Situation and Household Income. We offer mortgages for either Good Credit or Bad Credit. When you have filled out the information, click on the green “Next” button.
Step Three: Personal Contact Information
Fill in your contact information: First Name, Last Name, Email, Phone, Gender and Additional Comments. Finally, you can hit the “Get My Quotes” button. Within a few hours one of our experts will contact you to discuss your options based on the information provided. Congratulations, you just started your custom quote process.
Now that you know how to get a loan for a property – 4 expert tips and 3 step application – you are ready to seal the deal. Home ownership is a great accomplishment. Find the right housing loan quote to bring your dreams to life.