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You are thinking of buying or building a house, but you do not have the funds. The mortgage loan is without a doubt an interesting financing solution that allows you to finance the acquisition or construction of your home. Here are 5 things to avoid to maximize your chances of getting a mortgage.
Change career during the loan application process
Changing jobs during a loan application process is strongly discouraged. This will reset your employment history and possibly reduce your chances of getting a mortgage. Similarly, if you are planning to change careers altogether or start your own business, first check with your banker if this could affect your loan application. It is strongly recommended to seek advice from a mortgage broker for more information on this topic.
Have a bad credit score
Any late payment of your bills or debts negatively affects your score and your credit report. Similarly, failure to pay on a credit card results in a loss of points on your credit score. Always pay your bills and debts within the time specified by your creditors. Be aware that lenders evaluate your overall financial profile, not just your income. This assessment of your financial profile includes a relevant analysis of your debts. Pay attention therefore to your level of indebtedness and make sure you always have a good credit history.
Present false documents to your lender
Providing false or falsified documents can cost you a lot! In addition to refusing your loan application by the lender, you may be sued for falsifying documents.
Propose an insufficient down payment
Unless you are dealing with a private mortgage lender, almost all credit agencies require a down payment of at least 5 to 10% of the amount of the mortgage loan requested. With a down payment of more than 20%, your file will be more credible and you will not be obliged to take out loan insurance.
To have insufficient income
Revenue verification is a crucial step in the mortgage approval process. To have the best chances on your side, you have to justify good financial resources. The higher your income, the more credible your credit report is, and the more interest you have in lending money to the bank. For financial institutions and credit institutions, an applicant with good financial and solvent resources and no risk of non-repayment.
