4 Great Home Mortgage Advice Tips for Getting Approval by Lenders

Getting a mortgage is sometimes oversimplified in ads. They don?t tell you that some of the applications for mortgage are rejected. It is important to know some of the factor that has led some to be denied mortgage. Some of the things that banks consider include;

1.Credit scores

This is also sometimes known as FICO score. This is the report that shows your credit history that will enable the bank to determine whether you can pay for the mortgage or not. It determines the risk of the borrower. It is therefore important to ensure that your score is low. These scores can be derived from some major credits sources, namely, credit utilization, payment history and length of credit history.

2.Your personal income

This is not about how much you make but how must your average monthly income.  This is usually taken as the net income. That is the cost that is takes after household expenditure. This will determine the loan that you will get. It also enable the bank determine how much you can pay monthly comfortably. The banks usually consider the incomes from different sources, from salary, dividends, bonuses and interests. Itis always good to ensure that expenditure does not exceed a third of your income.

3.The loans you are paying currently

Mortgage lenders usually look at the kind of long term and short term loans you are paying. These may include car loans, student loans among others. This will be used to determine whether this will affect your payment of the mortgage. It can also demonstrate whether you have a good payment history. The only reason consider is to check on the proportion of your income the loans take. If after making this payment you are left with almost nothing then it will be difficult to get approval from many mortgage providers.

4.The percentage of the down payment you are making.

There is usually a minimum deposit that is required by the banks for you to get the mortgage. Most of the mortgage provider could require 20% of the price of the mortgage as down payment. Although Canada home mortgage advice for deposit of 20%, there are other that could be ready to accept a lower percentage. It good to remember that the higher the deposit the lower the period and monthly instalments you will make.


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All efforts have been made by most of the banks to avert the bubble crisis that affected world economies in 2008. Therefore is always important to ensure that you are on the safe side. With proper , preparation and planning you can be able to own your dream home in a short time.