Here are 5 key things should you be considering, if you are applying for a mortgage in the next
year:
year:
1) Locate and keep secure copies of your last 2 years tax returns and Tax Summary from CRA (Notice of
Assessment). If you are paid hourly, receive overtime, commission or bonus income, lenders will want a 2
year average of your income in order to be able to use the average or additional income over and above
your regular salary
Assessment). If you are paid hourly, receive overtime, commission or bonus income, lenders will want a 2
year average of your income in order to be able to use the average or additional income over and above
your regular salary
2) Try to reduce your debt footprint. If you plan to buy in the next year, NOW is the time to reduce credit
card debts, Lines of Credit and pay off that nagging student loan or car loan. Lenders must impute a
payment amount usually equal to 3% for any outstanding credit balances. This could impede the amount
you are able to qualify for when applying for a mortgage.
card debts, Lines of Credit and pay off that nagging student loan or car loan. Lenders must impute a
payment amount usually equal to 3% for any outstanding credit balances. This could impede the amount
you are able to qualify for when applying for a mortgage.
3) If you have any outstanding credit issues (collection items, judgements etc.) clean them up and ensure
they are showing as PAID on your credit report. Even if the collection amount is for a paltry $200 from
the last cell phone company that you had a disagreement with, PAID THEM. Even the smallest credit
issue can become a big one at Mortgage Approval time.
they are showing as PAID on your credit report. Even if the collection amount is for a paltry $200 from
the last cell phone company that you had a disagreement with, PAID THEM. Even the smallest credit
issue can become a big one at Mortgage Approval time.
4) SAVE for your down payment now. Make the small sacrifices to pad your down payment funds as
come buying time, having too much in your savings account is never a problem.
come buying time, having too much in your savings account is never a problem.
5) DON'T buy a new car, truck or boat! Taking on a new large loan for your dream car should wait if you
are considering buying a home in the next year. Taking on a new monthly payment could block your
mortgage approval (if the payment is too high) or limit how much of a mortgage you could qualify for.
Buy the car AFTER you get the house!
are considering buying a home in the next year. Taking on a new monthly payment could block your
mortgage approval (if the payment is too high) or limit how much of a mortgage you could qualify for.
Buy the car AFTER you get the house!