Buying a house is a huge deal. You’ll need quite a lot of cash for it. Applying for a mortgage would be the best choice. To help your application get approved, you’d make note of everything discussed.

Check Your Credit Report

Before applying for a home loan, you need to get a copy of your credit report. If your payment history is not good, lenders would see you as a risk. The higher your credit score is, the less risky it would be. Get the report in good shape before applying. You can do this by regularly making payments and finishing off debts.

Having a look at the report before the lender does is very important, as there may be a mistake on it. It’ll result in your credit being worse than what it is.

Choose the Right Bank

There probably are thousands of lenders near you. Some lenders may be stricter about applicants’ requirements than others.

By doing research, you’ll know which lender would likely approve your application. But more importantly, you can check up-to-date Canadian mortgage rates to find banks that won’t be charging a lot.

Some banks may be easier to work with down the line. The mortgage renewal process for a couple of them could be especially smooth.

Avoid Delays

If you don’t fill your loan application properly, there may be several delays. Even if you’re working with a mortgage broker, he may miss an error you’ve made.

One of the most common mistakes made is people is not listing their full name. Make sure that you state your exact income; rounded up figures won’t work. And if you don’t provide honest answers, the bank would know – they’d be doing background checks.

Speed Things Up

Speaking of how fast things would go, getting all of your documents ready would help. You’ll be able to send them all the documents at once, which would result in lesser people going through your application.

Here’s a list of the documents that the lender would like to see:

• Three months bank statements

• Three months pay slips

• Three years’ worth of tax returns

• Identification documents (passport / NIC)

• Proof of address

• An updated P60 form

• Proof of any commissions you’ve made

Don’t Take Overdrafts

Regularly taking overdrafts would be a red flag to the bank. They’ll see you as someone who’s struggling to meet expenses. Lenders would require your credit report, as mentioned. They can see if you’ve been in your overdrafts or not.

If you regularly take overdrafts, ask yourself if you’re in the position to even apply for a home loan. You’d be borrowing a massive sum with a huge interest rate.

When it comes to applying for a home loan, there are quite a few tips that would help. The most important would be to improve your credit score. You can do this by paying bills consistently. Be mindful of the lender you work with too. Some are stricter with their requirements than others.