Mistakes to Avoid When Applying for a Mortgage

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If you choose to buy your own home, chances are that you will need to take out a loan in order to afford it. This loan is a mortgage, with your house being given as collateral. Therefore, if you cannot pay the loan, the bank (or other financial institution) has the right to repossess your home. Therefore, getting a mortgage loan can be a difficult task, and you are required to complete a mortgage pre-approval process before you are allowed to take out the loan. This pre-approval is based on your employment, credit score, income, and any assets you may have.

While applying for a mortgage loan, try and make sure that your job is secure. If you change your employment after you’ve received your pre-approval but before you’ve received your loan, make sure to notify the bank as soon as possible. Change in employment can delay you getting your loan, and can result in a probationary period. If your employment is unstable, or your income is unsteady, you may not be allowed to take out a loan.
Another thing to keep in mind are your purchases. If any purchases are made in the previous 90 days in your credit report, you will have to explain these purchases. Furthermore, if you have any debt, you need to include a statement saying that this debt will be included in your debt ratio. You need to make sure that all of you purchases are accounted for, and that all of your debt is included in your debt ratio.
Make sure that you have your tax returns filed and ready, because mortgage lenders will ask for two years’ tax returns.
Make sure that any payments you are making are accounted for, and are included in your debt ratio. This also includes payments like alimony, car payments, or spousal support. Even though this is not included in your credit report, it still needs to be included in your debt ratio.

Though these steps can seem difficult and cumbersome, this process can be made a lot easier with a professional to help guide you through the entire process. Best Mortgage Montreal is a mortgage lender company located in Canada, and is staffed with some of the best mortgage brokers in the country. With a team of experienced professionals, you can be sure that you will have the entire procedure explained to you in a step-by-step format, so that you stay calm and in control of the situation at all times. Along with this, you can avail of custom-made mortgage packages that will suit you unique financial situation, allowing you to be able to own the home of your dreams. Furthermore, Best Mortgage Montreal has links with a large number of banks, credit unions, and other lending sources; this means that you will always have options available to you, no matter what financial situation you may be in. At Best Mortgage Montreal, you are guaranteed with professional and dignified service, and the company is committed to making sure that you are comfortable at all times.

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