How To Get Approved For Your First Mortgage

Applying for a mortgage can feel like a daunting task, especially if you have no idea where to start. The criteria needed to get a mortgage is now stricter than ever, so it’s important for first time home buyers to be completely prepared when applying for a mortgage. This guide will take you through the most important steps toward getting your first mortgage.

The Mortgage Approval Checklist

Work Out Your Monthly Income and Expenses

The most crucial thing to know before applying for a mortgage is exactly how much income you have to spare at the end of each month. To do this, you will have to calculate your total income minus your essential monthly expenditures such as groceries, bills, debts, and other loans. You will also likely need to prove this amount to your lender.

Consider Paying Off Any Debt

A mortgage is essentially a big loan, so it is a good idea to prove to the bank that you are responsible by paying off your other loans. Ensure that in the months leading up to applying for your mortgage you have payed all lenders and credit card bills on time. If you have big outstanding debts such as student loans or a car loan you may want to consider paying them off entirely before you apply, as having large debts can limit your mortgage options.

Set a Realistic Mortgage Budget and Down Payment

After analysing your income, expenses, and debts, you will have a fairly good idea of what you can afford moving forward. Based on this information, set an ideal mortgage for yourself that will work within your own limitations. This is also the time to consider how much you can spend on a down payment for your new home. It may be tempting to just go with the minimum down payment, but remember that a higher down payment will start you off with more equity.

Talk To a Mortgage Broker

To apply for a mortgage with confidence, meet with a mortgage broker. They know the rules inside and out and can give you reliable advice based on experience about applications, down payments, and negotiations. The best thing about seeking out a mortgage broker is that they take their fee from the lender, not you, so you are getting expert advice and are being guided through the mortgage application process for free.

By following this checklist you will be in the perfect position to start your mortgage application. To chat with a mortgage broker about your first home, contact us at MK Realty.



Emma Newlands